Weekly Momentum Positive, But….

03/01/2010 9:19 am EST


Thomas Aspray

, Professional Trader & Analyst

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The Dow Transports have closed higher for the past three weeks and are getting close to the previous highs at 4265. The RSI3 momentum is rising and above its 13-period WMA, but it did form a divergence at the recent highs before breaking its uptrend. On new highs, a more serious divergence would form. Momentum is also rising on the Dow Industrials as it turned up after testing key bullish divergence support. Key resistance is at 10,723. The Transports have key support at 3900, and for the Industrials, key support is at 9990.

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