According to Dow's Theory, the action of the Transports is the most resounding evidence of the market's inability to go higher on a sustained basis. Each time the Transports get close to the 3405 level we get a pullback in the market. Additionally, the Transports fall by a greater percentage than the Industrials making it much harder to recover from any declines. We need full participation of the Transports to feel confident about the market direction being up.
I have changed the Market Barometer upside target for the Industrials to 8928. I don't see (showing my limitations) the Industrials going much farther than 8928 without the Transports exceeding the 3405 level. Touc.