Monday, June 3, 2013

Quick Trading Note On Transports

Dow Jones Transportation Average may have found its short-term support today. The price stopped at a laminate of the lower trendline of the rising wedge and horizontals. I expect a quick resolution to the upper trendline of the wedge. But I want to remind that rising wedge is a bearish pattern. So I also expect that after series of new highs, which could last until the first part of July, there will probably be a nasty reversal to the downside, resulting in breakdown of this wedge.

click on chart to enlarge

1 comment:

  1. Considering the QE continues, I don't think its a wedge, more of a channel.

    The 6200s held today..just, and I'm seeking another 1000pts from here by August.

    Q2 earnings and the econ-data only need to come in 'reasonable' for this nonsense to keep rising another few months.

    I do agree though, when it breaks..its going to be very entertaining..and profitiable for those on the short side.