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Bulkowski’s Blog Archive: ^DJT

Blog Posting: March 10, 2008, Dow Transports (^DJT)

The figure shows the Dow transports (^DJT) on the daily scale. The decline that I have been expecting since my first posting on the tranys in early February, looks as if it is underway. Overhead resistance shown as a green line drawn along the peaks caused the average to reverse at the triple top marked with the three Bs. Price has formed a partial rise at A and continues lower. If symmetry takes hold, the transports should find support near the November low, making the pattern look like a head-and-shoulders bottom. That might be possible since it has taken longer than I expected for the tranys to move downward. However, in this market, anything can happen so I would not be surprised to see the transports continue down to the price of the January low.

Aftermath

Price completed a partial rise (at A) just as I suspected and broke out downward from the triple top/broading formation, right angled and descending pattern. Then it stopped near the price level of the left shoulder low, forming a right shoulder, RS. Clearly it never made it down to the January low, but that was a long shot anyway.