Yet he points out iShares Down Jones Transportation Average actually made an all-time high in 2011, unlike the Dow Jones Industrial Average.
“So the move over the past year in all likelihood has been one of consolidation and higher lows,” Verenger said. “The weekly chart of IYT suggests that there could be an outsized move in transports coming up imminently as it breaks out of this consolidation phase.”
The first chart below shows the relative performance of iShares Dow Jones Transportation Average against SPDR Dow Jones Industrial Average. When the chart is rising, transports are outperforming.
iShares Dow Jones Transportation Average
