Yesterday, on a big selloff day, the railways had some serious volume as they broke out to the upside.
Here is CNR.TO
Notice the nice big green candle on yesterdays volume. You can also see the purple shaded area at the top behind the RSI has taken off the the upside. This is the SPURS. or $SPX Relative Strength.
The RSI is very solid up near 70. The breakout in price is making 52 week highs. The MACD has broken the downtrend. The SCTR jumped above 80. This is a pivotal level on the SCTR where we usually see the start of major price moves.
Lets look at CP.TO
Notice the nice big green candle on yesterdays volume. You can also see the purple shaded area at the top behind the RSI has taken off the the upside. This is the SPURS. or $SPX Relative Strength.
The RSI is very solid up near 70. The breakout in price is making 3 month highs. The MACD has returned above zero, paused and turned to the upside again. The SCTR jumped to 79. This is a pivotal level on the SCTR where we usually see the start of major price moves.
So, it looks like an "All Aboard!"
Good Trading,
Greg Schnell, CMT
