Tuesday, September 8, 2009

Dow Transports

Not sure what to make of this but perhaps the transports may also provide some guidance? I have labeled the transports as a double ZZ.

Given today's price action, Wave Y (green) closed at a nice .618 x Wave W (green). Price here is also approaching the upper trendline of the bearish wedge. This technically, would suffice from an EW wave count.

If the transports have a a little more to go (which I think it may), that would complete Wave (c) blue at .382 x Wave (a) blue and place price right at the upper trendline.

Either way, I think the transports are also close to rolling over. If I have time, I will look at other sectors as well.


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