Well, the NYSE new highs/new lows and the NASDAQ new highs/new lows have both ticked upward.
And while the NYSE advance decline line is clearly moving up in a range, the NASDAQ advange/decline is still stalled in a range.
But, the transports aren't confirming these trends yet.
The overall transportation index is still in a trading range.
The trucking sector is still dropping
Railroads are still in a downtrend
And Air shipments retreated last week after an initial post-rate cut spike
The only transportation sector to be doing well is shipping:
My guess with shipping is it has a stronger international presence compared with trucking and railroads.
The bottom line is while the breadth gauges are starting to look attractive, the lack of confirmation from the transports would lead me to trade with extreme caution. To make a stronger commitment to this market, I would need to see the transports break out of their range convincingly.
