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The Dow Transports closed over 7% lower last week and the next major of level of support starts at 3700 (about 6% below current levels) and extends down to the 3500 area. The 40-week MA is at 4154 and is still rising, but the Transports need a close back above this level to reverse the negative daily and weekly momentum. The weekly RSI3 has turned lower and a break of support going back to the March 2009 lows would be negative. It needs to move back above its 13 WMA to suggest the decline is over.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
