The DJ Transport index

Lewis: “Machines are gonna fail. And the system’s gonna fail. And then…”
Ed: “And then what?”
Lewis: “Then survival – who has the ability to survive. That’s the game.”
– Exchange between Lewis (Burt Reynolds)and Ed (Jon Voight) in 1972’s Deliverance

Another important index is on the verge for a downward break on a technical basis. We’re talking about the Dow Jones Transportation Index.
Look to the support line where yesterdays close right on the mark.

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I am a train...

Exploring the universe of point-and-figure charts linked to renko pictures, we halt today at Burlington Northern Santa Fe Corp (ticker: BNI), a railway stock acting as an icon for everything that is around moving in the American economy. After the rally from March, it looks as if clouds are packing together at the horizon.
The daily renko chart is still upbeat: the daily trend is positive though a little overextended as the CCI-indicator is showing us.

On a 60-minutes base, however, things are looking different. It seems a short term correction is under way.

This thought is confirmed by the P&F chart where a triple bottom seems to be taken out soon.

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Travelling...

Something different. I try to hop over to mainland Europe and looking for a flight, I was amazed how cheap they are compared with a year ago.
As a professional commuter – once – I never forget to honor rules as: look and compare (priceline.com as a starter), look for connecting flights (sometimes they offer a good deal), take round trips, travel light. Consider to take a train in Europe. There are some cheap formulas and it goes fast and civilized. Something else than the 5-hour trip between Dublin and Cork in coaches almost 80 years old.
But I repeat: travel light.

And try to take a nap during travelling instead of beers. Well, the second is not excluding the first.

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Let's walk south

It seems that the run-up of the most important indexes is coming to a halt. Based on the 60-minute renko chart, we are alerted that the upward trend is broken and we are experiencing a kind of consolidation/correction. As we are prudent we are going for the former first, before we switch to the latter if more undoing of the rally becomes clear. We pay attention though: it’s month end. Never a good point to set-up positions if you’re not a daytrader.
As an illustration we show the Dow Jones Transportation index (ticker: TRAN):

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