“Trading is finding support around its 200-day exponential moving average. There have been brief underside breaks but the price sharply springs back to the average, implying support,” he added. “Momentum, the MACD, is turning up from oversold and showing a slight bullish divergence.”
One of the tenets of Dow Theory is that both the blue-chip Dow Jones Industrial Average and the transports should move in the same direction to keep a market trend in place.
iShares Dow Jones Transportation Average Index ETF
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA)
