The Situation

​We just start to realize how deep the correction last summer was on the ​​
​US equity market: On the low made on August 24 2015 on the Dow Jones
​Transportation Average ( DJT ) at ​7452.70, even if few realize that the DJT
​now trade ​just slightly above that level. ​(See first chart below: Amber Trendline)
​​​
The Mighty Dow Jones Transportation Average Index (DJT) is at some
major technical crossroads.​

Here is some Technical Observations:​​​
​1) DJT outperformed with 23.1% from its bottom reached on January 20 2016
​and SP500 is at only 14.5%​​​​ and in a steep uptrend channel. (See first chart below)​
​
​​2) DJT from highest peak price (reached on November 28 2014) to the lowest price yet (reached on
​January 20 2016) was 31.2% and only 15.2% for the Mighty SP500. ​​​​(See first chart below)​

​​​​3) DJT is testing the Dail Major Resistance Trendline that started back on March 20 2015.
​​​​(See first chart below - Thick Amber Trendline - Ellipse)​

​​​​​​​4) DJT is testing the Fibonacci Retracement zone of .50% at 7857 (From peak price on May 20 2015 to the Low price on January 20 2016) (See first chart below - Thin Green Line - Ellipse)​

5) ​​It is the first time since September 21 2015 that we have that ratio (Dow Jones Transportation ​to the Mighty Dow Jones Industrials) kissed the 200 DMA (Day Moving Average) ​​(See second chart below - Green Line - Ellipse)​ and back below the previous break down zone. ​​(See second chart below - Brown Trendline - Ellipse)​

​​6) ​​It is the first time since March 20 2015 that we have that ratio (Dow Jones Transportation ​to the Mighty SP500 Index) kissed the 200 DMA (Day Moving Average) ​(See third chart below - Green Line - Ellipse)​ and back below the previous break down zone. ​​(See third chart below - Brown Trendine - Ellipse)​
 ​
As the ​​​​​Dow Jones Transportation ​finally rebounded strongly since January 20 2016, it failed to stay above the Major Trendline that started back on March 2015 ​​(See First Chart - Thick Amber Trendline - Ellipse) but most importantly was rejected strongly on a relative basis (Mighty Dow Jones Industrials and the SP500 Index) by failing to stay above the ultimate 200 DMA (Day Moving Average)​​​ (See second and thirdt Chart) 
The Dow Jones Transportation ​is obviously at Technical Crossroads.




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