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A week ago (click for chart), as the Dow Transports closed below the 200-day MA, I advised that it and the Nasdaq were the averages to watch as they were the market leaders. The Transports have rebounded sharply as the 50% retracement resistance was tested Monday. Even more important, the on-balance volume (OBV) looks very strong as it is above its WMA and is already close to the April highs. A close back above 4500 would be quite positive.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
