The Dow Jones Transportation Average (TRAN) dropped over 8% today and 12% for the week. This is the first signal of the recession that the economist have promised us. The SPX and Nasdaq have been down but that could have been related to the financials. When the TRAN dumps then there isn’t much doubt that the big guys want out for more than a month or two. There is a chance that this recovers quickly but it isn’t something to expect based on the chart.
The small cap 600 (SML) make a new low on lower volume. But buyers need to come in a hurry to say these stocks. The Russell 2000 (RUT) looks similar.
The VLE has held up well during the decline but gave up the ghost this week. Nothing bullish here.
Charts courtesy of Stockcharts.com
I’m not sure how my cycle turn next week will play out but it should be interesting.
Tags: Growth Stocks · Market Cycles · Russell 2000 Smallcaps · Transports · Value Line Arithmetic Index (VLE)6 Comments
6 responses so far ↓
you know, the worst thing is that the market went down and broke support on low volume
Which cycle turn?
on the 6th? Sun-Jupiter thing
The cycle on the SPX Roadmap I’ve been tracking for years.
I’m here just couple of weeks - where is that chart?
and what is cycle turning date?
TObject - I’m sorry. The SPX Charts link in the right sidebar has this chart which I try to update weekly. I also added a post with the chart this morning.
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TObject - is Borland your last name?
>is Borland your last name?
you got me there :))