Friday, October 5, 2007

Could the Transports be getting into gear?

It now appears that the transports are ready to breakout of the triangle on the flat side as tech rule #6 (Triangles of either slope may mean either accumulation or distribution depending on other considerations although triangles are usually broken on the flat side) would suggest is the greater possibility. While the transports haven't broken below the Aug. 16th lows they have been lagging. A break below the Aug. 16th low would have been a Dow Theory nonconfirmation and a possible warning sign. It is now starting to appear that possibility is becoming more and more remote.