FYI: Over the last few weeks, the weakness in the Dow Jones Transportation Index – on both an absolute basis and relative to the Dow Industrials – has become the divergence du jour on everyone’s lips. It has replaced the divergence between small and large caps from 2014 as this year’s technical bogeyman (see: The New NEW Divergence). The chattering classes have opined that the transports are telling the real economic story while the industrials are kidding themselves – thus a recession / market top is nigh.
Regards,
Ted
http://thereformedbroker.com/2015/06/01/ari-wald-2-things-you-dont-understand-about-dow-theory/
