Yesterday we saw the Dow Jones Trasportation Index hitting new lows since the 5,627.85 high. That might be a clue, that we will soon see the Dow Jones Industrial Index follow suit. that said it could also be a warning, that we are seeing a small positive divergence between the two indicies, calling for a bottom soon. I does not favor the later possibility. Remember we have both a major and a semi-major divergence, when the DJT made a new all-time high, which the DJI did not. In July the DJT made a new high not confirmed by the DJI, which made its high in May.
These two Dow signals flashed all the red lights, that a major change in trend was underway and here we are.
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