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Though the S&P 500 and Dow Industrials retested the lows Tuesday, the Dow Transports have held above last week’s lows. The Transports have been one of the strongest sectors since the 2009 lows. The uptrend in the RS has held on two tests this year and is back above its WMA. The Nasdaq has been underperforming since the end of June when the uptrend in the RS was broken. It is now in a downtrend and the Nasdaq has formed lower lows. It will take some time before the Nasdaq can regain leadership.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
