The Transports are part of Dow Theory, which basically says indexes have to confirm movements. That is, when one index rises, another has to rise and so on. The transports are important because they tell us if investors think the economy will have to move more stuff from point A to point B, indicating increased economic activity.
Are the transports forming a double top? Maybe. But also notice the index could not rise above the 200 day EMA indicating traders do not want it to move into bull market territory.
The accumulation/distribution line printed a lower total on the second top, as did
the MACD. In addition
On balance volume did not increase on the second top, indicating there was not an increase in trading inflows.
