Tuesday, August 25, 2009

Today's Markets

Click for a larger image

Above is a chart of the transportation average. I included it because it hasn't risen above previous levels. In fact it may be forming a double top. Notice that even though we are seeing second top, the underlying technicals of that top are weak -- the RSI is lower and the MACD is printing a lower number. That means the prices in the second top are weaker than the first which is not a good development.