Watching the Transports
The Dow Transports Index remains a noteworthy confirmation or non-confirmation of market action.
"What you do speaks so loudly that I cannot hear what you say."
-- Ralph Waldo Emerson
Scanning for signs of divergences is like watching a child grow -- always easier to spot after extended time has passed but real-time identification is often difficult. That's why I usually resort to looking for "proof" to assess divergences.
A few days ago, I had shared the thought of keeping Dow Transports on the radar as a tell. (Click here to read; subscription required.) Dow Transports did attain a marginal new closing-high a couple of days ago but is yet to make any significant advance out of the short consolidation.
Interestingly, this index is among the best performers in the major indexes today and is tantalizingly close to breaking out of this range. It still remains on my radar as one noteworthy confirmation or non-confirmation of market action.
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