Transport Triple Bottom?

By | June 17, 2015

The Dow Jones Transportation Average has been a drag on the broader market, but there may be a signal that it is attempting to stabilize. The daily chart shows a three month period in late December 2014 to February of this year, when the average formed a triple bottom in the 8600 area. This process was accompanied by a rising Chaikin money flow reading. A second triple bottom formed around the same level in late March and early April, again accompanied by a rising money flow indicator. The index may be trying to put in another triple bottom and there is improving Chaikin money flow. The rallies off the previous triple bottoms were not sustained, but maybe the third time is the charm.

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