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The Russell 2000 and Dow Transports were both up over 2.7% on Tuesday after both had been lagging. The Russell 2000 has moved above both the June and July highs. The weekly on-balance volume (OBV) is acting much stronger than prices as it is well above the April highs. Once above major resistance at 744, there is a Fibonacci target at 792. The Dow Transports are close to breaking the weekly downtrend at 4675 with upside targets at 5060. The OBV is also leading prices. The Transports held up better on the correction.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
