The DJ transportation index and the DJ Industrial index are suppose to move in the same direction ( same direction does not equal same rate of return), as per the Dow theory. However , for the past 10 days or so, we've seen the DJ Transports, represented by IYT, break it's trend line and diverge from the DOW ( Orange line) .
So, is the transport index trying to warn us about a upcoming correction in the market ?
SOURCE : SEEKING ALPHA ( seekingalpha.com/art...-theory-warning-shot)
So, is the transport index trying to warn us about a upcoming correction in the market ?
SOURCE : SEEKING ALPHA ( seekingalpha.com/art...-theory-warning-shot)