Dow transportation index (on the left had side) is still trading inside a falling trend line and way below the record high. On the other hand, we have Dow 30 which is just a 100 points away from record high.
Note on both the charts, daily RSI is breaking higher from the falling trend. For Dow30 it means, fresh highs are possible. However, for Dow Transportation index, a breakout in the RSI won't help, simply because the index first needs to take out the falling trend line.
Investors should watch out for a failure at falling trend line hurdle in Dow transportation index as that would suggest a correction in Dow30 index.
Note on both the charts, daily RSI is breaking higher from the falling trend. For Dow30 it means, fresh highs are possible. However, for Dow Transportation index, a breakout in the RSI won't help, simply because the index first needs to take out the falling trend line.
Investors should watch out for a failure at falling trend line hurdle in Dow transportation index as that would suggest a correction in Dow30 index.
