Tuesday, May 20, 2008

Transports vertigo?

On my parent website I have focused more on the main lead markets with the charts hosted by Stockcharts.com. The Dow theorists will want to take a look at the Transport Index. Monday saw a large inverse (bearish) hammer on heavy volume. Contributing to the toppy look was the stochastic 'sell' at overbought conditions and the extended nature of bullish trend strength.

I have redrawn Fib retracements from before. I am liking the convergence of the 50% retracement and the 200-day MA as a downside target.

Declan Fallon is developing trading strategies, market indicators and sentiment tools for Zignals