Thursday, February 1, 2007

Dow Transports Improve

One of the complaints I've had with the current market is the lack of confirmation from the Dow transports -- while other indexes have hit record highs, the transport average has lagged. No longer

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Notice the nice bull run over the last few days on increasing volume. While the average is still 1.91% below its high of late May/early June, this seeks action indicates there may be some bullish sentiment.

What we need now is one of two events. Either a continuation of the uptrend, or a slight pullback on lighter volume. Either of those developments would help allay my concerns about this market's overlall health.