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Written and copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved.
Blog Posting: March 10, 2008, Dow Transports (^DJT)
The figure shows the Dow transports (^DJT) on the daily scale. The decline that I have been expecting since my first posting on the transports in early
February, looks as if it is underway.
Overhead resistance shown as a green line drawn along the peaks caused the average to reverse at the
triple top marked with the three Bs. Price has formed a partial rise at A
and continues
lower.
If symmetry takes hold, the transports
should find support near the November low, making the pattern look like a head-and-shoulders bottom. That might be possible since it has taken longer than I expected
for the transports to move downward. However, in this market, anything can happen so I would not be surprised to see the transports continue down to the price of the January low.
Aftermath
Price completed a partial rise (at A) just as I suspected and broke out downward from the triple top/broadening formation,
right angled and descending pattern.
Then it stopped near the price level of the left shoulder low, forming a right shoulder, RS. Clearly it never made it down to the January low,
but that was a long shot anyway.
-- Thomas Bulkowski
Copyright © 2008-2011 by Thomas N. Bulkowski. All rights reserved. Airline luggage virus: You're in Dallas, but your data is in Singapore.
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