I posted a few articles in the last month on the Transports and how I felt like they were due for a correction. Please see "5% Fall in the Transports Dead Ahead". I did a follow up post that frankly was even more focused on using a fall in the transports to identify a larger drop in the SPX called, "Historical View - Transports and Tulips" that examined several past drops in the transports that led the SPX much lower.
Now that the transports are flirting with the 4900 level, let's take a look at a chart and see if we can figure out if the fall is done or if more is on the horizon.
Based on the chart above it appears as though we will test the 4625 level and if that does not hold, another 10% fall would bring 4250 into play. Obviously a drop of the transports would also mean that the broader markets would be under full assault too.