As seen in the rst chart below the transportation stocks havebroken below a support area we eel should have held, espe-cially i the economy is in decent shape here. Recent economicreleases on the unemployment rate, jobless claims and continu-ous claims did not help to shed any light on the recovery as thesemetrics continue to fat line. We nd hard it hard to embracethe notion the economy is on sold ground while the transportsare breaking down and copper and crude remain directionlessat best. Crude, like copper, is a gauge o global demand and“black gold” sloshing around below resistance and near thelower end o its trading range is not an overly encouraging sign. The only silver lining short-term is we remain pretty oversold,though yesterday’s inability to hold onto decent point gainssuggest bulls are not overly condent, even with stock prices atmuch lower prices levels than just a month ago. The other silverlining is that bullish sentiment remains paltry at 24.68 %.Overall the market remains a “hot potato” tape where tradersrent ‘em but don’t buy and hold ‘em. Markets like that typicallydon’t inspire condence or big gains.
Transportation stocks below support,
Kevin P. LaneChie Market StrategistP 212-661-2022E email@example.com
crude oil weaker...
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