Dow Transports Are Leading Market Higher
05/04/2010 9:09 am EST
Monday’s strong close was a bit surprising after last Friday’s plunge. The Dow Transports led the market higher, closing up 2.9% versus just a 1.3% gain by the S&P 500. The RS line broke through resistance on April 14 and has acclerated to the upside over the past week. Since it has been a leader since March 2009, this should be a positive for the overall market. The upper trend line and major chart resistance from 2008 are in the 5300 area.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.