Don't Ignore This Chart!

Dow Transports Tests Major Support Level and Dow Theory

The Dow Transports surged to resistance last week and plunged to support this week. Overall, the junior Average has been stuck in a trading range since mid June with support at 4900 and resistance around 5250. A break below 4900 would be clearly bearish for the Average and negative for Dow Theory.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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. Learn More
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