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 ( DJT ) at ​7452.70, even if few realize that the DJT now trade
​well below that level. ​( See first chart below: Amber Trendline )
​​​
The Mighty Dow Jones Transportation Average Index (DJT) is in bad 
technical shape but lately started to outperformed.

Here is some Technical Observations:​​​
​1) DJT is at 24.9% from its peak reached on November 28 2014.​
​​​​( 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%. ​​​​( See first chart below )​

​​​​3) DJT tested and broke already the Monthly Major Support Trendline that started back on October 2014.
​​​​( See chart below - Thick Blue Trendline )​

​​​​​​​4) DJT broke also the Monthly Major Support Trendline that started back on March 2009 and now become Major Resistance. ​​​​( See chart below - Thick Red Trendline - Ellipse )​

5) ​​It is the first time since July 27 2015 that we have that ratio (Dow Jones Transportation ​to the Mighty Dow Jones Industrials) getting above the 50 DMA ( Day Moving Average ).
​​( See second chart below - Red Line - Ellipse )​

​​6) ​​It is the first time since July 28 2015 that we have that ratio (Dow Jones Transportation ​to the Mighty SP500 Index) getting above the 50 DMA ( Day Moving Average ).
​( See third chart below - Red Line - Ellipse )​
 ​
As the ​​​​​Dow Jones Transportation ​is finally rebounding, Bulls need a weekly close above the Monthly Major Trendline that started back on March 2009 to see a bigger bull impulse and not only a dead cat bounce.
​( First Chart - Red Line - Ellipse )





​​

tatisticCode" src="Scripts/stats-tracking.js">