The bull price action momentum that returned to the Dow Transports September 11th last has now vanished, and is beginning to indicate renewed market weakness.

The Dow Industrials, the S & P 500 and the NASDAQ are displaying no such tendency. On the contrary, they show all the signs of a parabolic “blow-off”, which is the classic signature of a bull market termination.

In and of itself, a trend change in the Dow Transports is of no significance unless confirmed by the Dow Industrials. However, the fact that the Russell 2000 has broken a “line” and is showing similar momentum decline is a development that traders might ponder upon and accordingly take some profits off the table. If the 9021 price point on the Trannies is breached I would be even more defensive.

Chart: Dow Industrials: Daily

Chart: Dow Transports: Daily.

Chart: S & P 500: Daily.

Chart: NASDAQ 100: Daily.

Chart: Russell 2000: Daily.

Charts: Courtesy of StockCharts.Com

Christopher Quiqley

B.Sc., M.M.I.I. Grad., M.A.
http://www.wealthbuilder.ie

Mr. Quigley was born in 1958 in Dublin, Ireland. He holds a Bachelor Degree in Accounting and Management from Trinity College Dublin and is a graduate of the Marketing Institute of Ireland. He commenced investing in the stock market in 1989 in Belmont, California where he lived for 6 years. He has developed the Wealthbuilder investment and trading course over the last two decades as a result of research, study and experience. This system marries fundamental analysis with technical analysis and focuses on momentum, value and pension strategies.

Since 2007 Mr. Quigley has written over 80 articles which have been published on popular web sites based in California, New York, London and Dublin.

Mr. Quigley is now lives in Dublin, Ireland and Tampa Bay, Florida.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Christopher M. Quigley Archive

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