The Transports Bottomed

DOW TRANSPORTS
DOW TRANSPORTS

The other night, I did a post about the power of trendlines, specifically “uptrend” lines that were broken, leading to much lower prices. Tonight, the focus is on downtrend lines that get broken to the upside. Very powerful, especially if the trend line is broken with significant volume.

There is no better example of  a downtrend line reversal than what happened today with the transports. $IYT exploded today, broke its downtrend line with massive volume.

The actual ETF for the transports is highlighted above, with specific stocks within that group listed below. This trend change is importnat for the continued success of this rally. Stay tuned

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$CSX

 

CSX
CSX

$NSC

NSC
NSC

$UNP

UNP
UNP

Joe Donohue

Joe is a full time trader with 25 years experience. He is a senior contributor and investor in Stocktwits and has been seen on CNN Money and quoted in Marketwatch, Forbes, Reuters, NY Times and Wall Street Journal.