
It would take a sustained gain for the Transports to generate a "Golden Cross" and it's hard to see this happening as broader indices struggle to challenge June highs. Bulls can take some comfort from a potential ascending triangle but should the index fall back from its 200-day MA and test its support there isn't much wiggle room should support break.
A 50% trim of the March-June rally could see this challenge 2,800s (or the early April reaction low).
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.