Wednesday, February 18, 2009

Dow Transports gone....

A second look at the charts hasn't improved the prognosis. The Dow broke open/close support from November (but hasn't violated lows - yet)

However, the Dow Transports cratered and it looks certain the Dow will do likewise. The break occurred on a third distribution day since the last accumulation day.

Summation Indices turn down from overbought conditions - this could fall a long way; NYSE below

Ugly day - Ugly outlook.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website