Tuesday, June 8, 2010

Dow Transports Break Previous Low

The Dow Transports closed at 4037.98--122.53 points below the May 20th low (close). The Industrials made a new low close--since the April high--but did not break the May 25th low of 9756.11. Dow Theory fans will understand that this is not a positive development for market bulls. The chart below presents a case for lower levels in the month of June.
click to enlarge

The USDX chart suggests that prices will reach the 92.5-93.5 level this summer.
click to enlarge

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