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Both the Dow Industrials and the Dow Transports made new rally highs in early November and are still holding well above their 40-week moving averages (MAs) as well as trend line support. They have retraced more than 61.8% of the decline from the 2007 highs, which is a positive sign. The Transports, however, have dramatically outpaced the Industrials and from the 2009 lows through Tuesday’s close, they were up 123%. During the same period, the Industrials were up just 70.6%.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
