Thursday, November 15, 2012

TRANSPORTS UPDATE


GOING LOWER?
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.

Good luck!


GOATMUG

Goatmug is an investor that cares about you and your family. Goatmug's Blog - Financial Perspectives From The Mountain Top is a collection of thoughts on our economy and how it impacts the lives of investors and average people. While several specific investments are named in many of his posts, these articles are simply invitations for you to do your own research and reference to these securities does not constitute financial advice. Your situation is complex and unique and you should seek professional assistance with your trading and investing. Please visit Goatmug and share your comments athttp://www.goatmug.blogspot.com/