After a most impressive rally, the Dow Transports stopped just short of its 200-day simple moving average with a sharp decline the last four days. Also notice that this key average is trading below its prior reaction high (early January). Watch the rising 50-day moving average for potential support on any pullback.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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