xjo weekend zoomba lounge, page-25

Here is a look at the Dow Jones Transportation Index (DJT).

Daily from July 10 low to date:

Price: 7 July 11 high was a 1/4 extension of the move up from July 10 to February 11 = solid resistance in price

Time: 7 July 11 high was 366 days from 6 July 10 low = solid resistance in time

Current pullback has kept well above a 1/4 retracement with the current low at 21.19% and that folks keeps the move up since the low last year in a very strong position.





And 15 minute from the 7 July 11 high to date:

Price: the retracement has so far been kept below 5/8 which is not a problem at this stage in the move. Note the DJIA and SP500 are a couple of days ahead as this is where they were trading last Wednesday.

Pattern: the chart looks to be forming a well rounded stable saucepan or rounded bottom so there is absolutely no problem with the way this looks to me right now in spite of the underperformance against the major indicies. Current possible bull flag in the triangle which to me is more likely bullish where is positioning itself.

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Conclusion: Holding to such a tight retracement of the move up since July 10 low coupled with the pattern on the 15 minute presents a sound bullish structure to this index. I don't see any problem with the structure at all but I haven't taken a microscope to it yet. Also noted if you check out the weekly that this is the 4th time against significant long term resistance and the 4th shot carries the probabily of going through. Actually, the weekly looks like it could go gang busters so I thought I better put it in...