UPS is a key part of the Dow Transports and perhaps a leading indicator for the stock market. Notice how the price relative (UPS:$SPX ratio) bottomed ahead of the stock market in March. UPS started showing relative strength before the actual market bottom. Most recently, the price relative peaked in April and UPS has been showing relative weakness the last two months.
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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