Here are just a couple of facts to be aware of. Both the Dow Jones Transports on a weekly basis and the Semiconductor ETF on a weekly basis have just broken out to new highs as in the two-block chart below.
And even though this is the case, it is possible from an EW perspective that they count differently due to internal overlaps and prior wave structures. It is possible the semi's better represent the monthly diagonal we are likely in. The transports may be finishing a fifth wave of some type.
And while neither of the wave structures may be exactly finished yet, it is worth watching their developments from here, especially as it relates to the formation of the major averages going forward.
It is especially interesting in light of Dow Theory that the transports have made a new higher monthly high without the Dow Industrials yet. It is also interesting that the NYSE Advance/Decline line has not yet made a new high, either.
Have an excellent rest of the weekend,
TraderJoe
Fascinating! Dow Theory non-confirmation has always been indicated by Transports failure to confirm a new Dow Industrial high, not the other way around, the former assumed to be a more accurate gauge of the true state of the economy. Global geo-political and economic realities obviate the need for any index indicator imo. New high notwithstanding, hard to assess it as anything other than a terminal wave, considering what we know. Consumer sentiment notched a historic low since records being kept from 1952.
ReplyDeleteTook a gander at DJT. ORD last session. IYT not try at new ATH.
ReplyDeleteI have no idea what this is about. DJT is Trump Media. ORD is Ordell Minerals, and IYT is a IShares Transports as best I can see. TJ.
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