By Sam Collins
One of the remarkable technical events of the past 12 months is the breakout and blast-off of the Dow Jones Transportation Average. On Tuesday, the index set a new all-time high after breaking from a 10-month consolidation in early December.
RSI is somewhat overbought, and Tuesday’s spike to new highs could lead to some profit-taking. But the momentum of this remarkable performance is usually predictive of a better-performing economy, and thus, a pullback in this or any index should be viewed as a buying opportunity.
Conclusion: Despite the lack of volume, stocks appear headed to new highs, boosted by better-than-expected retail sales and the anticipation of a better economic climate. Even the breakdown of the most influential technology stock of the decade (Apple), the fiscal cliff, and the threat of a U.S. bond default have failed to stop the advance………….
- Stocks Are Overbought: It’s Time To Raise Cash And Wait For A Pullback (seekingalpha.com)
- Stocks to Watch: DCTH, DNDN, FORM, TSN, ZLCS, ZNGA (wallstreetpit.com)
- The S&P 500 Chart Says That Apple Is Oversold, Ford Is Overbought (minyanville.com)
- Small Caps Look Like Traders’ Strongest Bet (investorplace.com)
- Chart analysis for Crown 16/01/2013 (technicality.me)