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 ( DJTA ) at ​7452.70, even if few realize that the DJTA
​now trade ​well below that level. ​( See first chart below: Amber Trendline )
​​​
Rebounding from those abyssmal technical levels was quite a statement
​from Mr Market in August 2015 but we keep making lower highs and lower
​lows and still into a Monthly Downward Channel for the DJTA and the Mighty
​SP500 Indexes as shown by the charts below.
​
​
Some technical indicators and statistics:

1) SP500 Index is at only 9.5% from its peak reached on May 20 2015.​
​​​( See first chart below )​

​2) SP500 Index is in fact far of testing the Monthly Major Support Trendline that started back on March 2009. ​​​
​( See first chart below - Thick Blue Trendline )​
​
3) SP500 Index tested the Monthly Major Support Trendline that started back on October 2014 and rebounded. ​​​​( See first chart below - Thick Red Trendline - Ellipse )​
​
​4​​) DJTA is at 21.1% from its peak reached on November 28 2014.​
​​​​( See second chart below )​
​
​​​​5) DJTA is testing already the Monthly Major Support Trendline that started back on March 2009.
​​​​( See second chart below - Thick Blue Trendline - Ellipse )​

​​​​6) DJTA tested and broke already the Monthly Major Support Trendline that started back on October 2014.
​​​​( See second chart below - Thick Grey Trendline - Ellipse )​
​
​ONE chart below is worth a look where we will show the ratio of the ​​Dow Jones Transportation Average ​to the Mighty SP500 which shows the strong out performance in February of the DJT over the SP500. ​.( Bottom Chart )

​​​​​But the most interesting technical factor is that it is the first time that we have that ratio (Dow Jones Transportation ​Average to the Mighty SP500 Index)  back above the Monthly Major Support Trendline that started back in January 2008. ​( Bottom Chart - Blue Line - Ellipse )





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