The Dow Jones Transportation Average Index (TRAN) shows price slightly above the 50% retrace line of the 2003-2007 bull market. Price bounced off the 1×2 descending Gann angle and never reached the 1×1 ascending angle (blue). This is somewhat bullish. Price may have completed an A-B-C correction or may be basing for another leg down. Any move that sticks below the 50% price retrace will be bearish.
The emerging markets index (EEM) is in much worse shape. Price moved all the way to the 1×1 ascending Gann angle before bouncing. The time cycle has not reached 25% of the 2003-2007 frame.
Charts courtesy of Stockcharts.com
Tags: A-B-C Correction · Dow Jones Transportation Average (TRAN)1 Comment
1 response so far ↓
Andy, looks like alot of shorts got nailed…LOL! this morning, should be an interesting move, the ? is when will it end….and how much do we stick our necks out …..I stuck mine out alot in the last 10 min. of the market yesterday….funny you would mention nat. gas…CHK rolled into that and WB, I like steel right now too, didn’t buy any but I do like the set up. Ray, how warm is it in AZ… Andy and I will need to be thawed out around mid Feb. Andy more than I, Pa, gets more snow than ohio…LOL! Ray, I also want you to know that this election really did not mean much to me… Obama has already won, McCain could never pull Ohio and Florida. Ohio’s Republicans have changed. I try to just Psychologically get what people are feeling and it helps in my trading. well, gotta get a little shut eye, Happy Election Day! Later.