Short Term Trading Member Forum

[techcharter]

Dow Transports About To Slam On The Brakes

In 1999 the Dow Transports started a 5 year consolidation that ended in March '03 This is probably a Huge Wave 4 when viewed from a 35 year chart of monthly ticks. Sorry, Big Charts is Java based and the link won't copy the way that will show what I mean.

The Huge Wave 5 started at the March '03 lows.
Large Wave 1 ended Jan '04
Large Wave 3 started April '04
Large Wave 5 started Oct '05
http://stockcharts.com/def/servlet/SC.web?c=$TRAN,uu[w,a]wacayyay[df][pb50!d20,2!f][vc60][iLp14,3,3!...

Short term you can see a the Large Wave 4 triangle that started in March '05 and ended at the Oct '06 lows. Since then Large Wave 5 has formed a fairly clear 5 wave sequence. Even I can see this!!! One of the e-wave guidelines is wave 5s following triangles are short thrusts that equal the width of the triangle. The Oct '05 fits both structure and price ratio. A major turn in the Dow Transports is about to happen.

http://stockcharts.com/def/servlet/SC.web?c=$TRAN,uu[w,a]dacayyay[dd][pb50!d20,2!f][vc60][iLp14,3,3!...

From a Dow theory view, neither the transports and industrials have confirmed each other. The industrials were not confirmed by the transports in 2000. The transports new all time highs are not confirmed by all time highs in the industrials. Non-confirmation of this magnitude is signaling a major downtrend is about to happed in both markets.