The Dow Jones transports have been badly lagging the other indices leading many to wonder if a Dow Jones sell confirmation signal might not be in the cards. One thing I caution about is that the current pattern could turn into a HT on us and that would really screw the shorts one more time. DJIA and S+P and $COMPX have, IMO, been weak because the transports have been weak. But if the transports break out the top rail then it could ignite even more optimism in the markets.
So all I can say is shorts should watch this closely. It's bad enough if the bottom rail breaks out but if the top rail goes as well then chances are the shorts will get screwed again. However, if this just goes up and kisses the lower rail from below but cannot break back up and out then longs will take notice and begin to bail out IMO.
I would if I were them...
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