More Problems From the Transportation Sector

I still love the simplicity of Dow theory. In a nutshell -- when the economy is doing well we need to ship more and more stuff. Therefore, we need more transportation services. This increases transportation company earnings which should increase the transportation sector. Simply reverse the process in a downturn. In other words, the Transportation average should confirm the broader market movements. The above video tells us we're nowhere near that point in the market.