Ever since QE ended, the market has been incessantly propped up mainly by central bank jawboning. The economic data worsens every week. Macro data is at 6 year lows.. One sector has gotten weak and stayed weak this entire time. The sector representing a dominant pillar of Dow Theory: The Transports.
Price is being rejected from the 50day MA, lets see if price finally manages to break the 200day MA below.
Price is being rejected from the 50day MA, lets see if price finally manages to break the 200day MA below.
Transports are weak and a break below 154 could get ugly!
Also of note today is the Biotech Sector getting pounded today on heavy sell volume. Biotech's have been absolute monsters, remaining well out in front the tape for almost the entire Bull Market. However, the volume/price action of late reeks of distribution. Let's see if this is yet another meaningless momentary dip only to be immediately ricocheted higher, or if we are seeing the early stages of a meaningful change of character...
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