The Dow Jones Transportation Index is up once again today, putting up 17.5% since mid-November. Ā As shown in the chart below, the Transports are beginning to defy gravity.
The Transports index is now 9.3% above its 50-day moving average. Ā While very high, this spread has actually been higher four other times during the current bull market. Ā The last two times the Transports index got this extended, it stalled out once it got to 10% above its 50-day, which isn't very far off from where it is now.
Copyright Ā© Bespoke Investment Group
