S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Transportation

Transport Sector Causes Problems for Dow Theory Bulls (IYT)

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Dow theorists may have a bit of a dilemma on their hands. The Dow Jones Transportation Average ($DJT) is not just down today. The index broke under the 50-day moving average and the 200-day moving average yesterday, and today’s lower levels likely will be interpreted as a confirmation of a broken chart. To add insult to injury, it was only recently that a golden cross was formed in the Transportation index chart as the price moved above the 50-day and 200-day moving average.

The iShares Dow Jones Transportation Average (NYSEMKT: IYT) shows this as well in the chart below.

The market’s rise is supposed to be confirmed by the rise in transportation stocks. After all, how can there be a great recovery boom if goods (and now services) are not being shipped all around the country (or even the globe).

We would caution that this is a very old notion, and perhaps there are many more factors to consider now as the markets are global and as the services sector now rules the roost.

That being said, it is probably worth watching. If transports break down, the media will start giving this more and more attention.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. a673b.bigscoots-temp.com.

Continue Reading

Producer Price Index Moves From Inflation Back to Deflation
Jon C. Ogg |

Producer Price Index Moves From Inflation Back to Deflation

The Department of Labor reported that the Producer Price Index for final demand fell more than expected in December.
Even Higher Producer Prices vs Consumer Prices Not Spooking the Markets
Jon C. Ogg |

Even Higher Producer Prices vs Consumer Prices Not Spooking the Markets

Thursday's report on producer prices was actually hotter than the consumer report when it comes to inflationary pressures.
PPI Ticks Marginally Higher Despite Plunging Energy Prices
Jon C. Ogg |

PPI Ticks Marginally Higher Despite Plunging Energy Prices

The U.S. Department of Labor has released its Producer Price Index for final demand for the month of November.
Douglas A. McIntyre |

Oil Inventories Confirm Technical Event in ETF Charts (USO, OIL)

Oil was already against the ropes and off current highs because of the CFTC seeking limits on speculators and on…
Live Markets: Mixed Markets, Dow Extends Losses, UNH
Gerelyn Terzo |

Live Markets: Mixed Markets, Dow Extends Losses, UNH

Live Updates Market Sell-Off Hits Dow, Tech Leaders Feb 21, 2025 at 3:13 PM EST | Gerelyn Terzo Stocks are…
Consulting the Charts: Ugly Reversals Amid Rising Rates
247patrick |

Consulting the Charts: Ugly Reversals Amid Rising Rates

Consult a chart of any of the major indices and it’s not difficult to identify the primary trend. Currently, every…
Should a Month of Higher Producer Costs Be Scaring the Federal Reserve About Inflation?
Jon C. Ogg |

Should a Month of Higher Producer Costs Be Scaring the Federal Reserve About Inflation?

The U.S. Bureau of Labor Statistics has reported that producer prices are starting to pose a problem for inflation. Or…
Jon C. Ogg |

Dividend Investors Have To Weigh Shipping Fundamentals and Outlook (NAT, ALEX, OSG, ESEA, SFL, DRYS, SHIP, SEA)

The world of shipping dry goods, sea containers, and oil and commodities has been in a very strange place so…
Jon C. Ogg |

S&P Chart Sees 200-Day Moving Average Alert

ThinkstockAfter PPI and retail sales showed no major pressure, stocks are trying to find their footing after selling off considerably…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618