by winston » Sun Feb 19, 2012 12:34 pm
Providing some ballast for the analyst's apprehension is the action in the Dow Jones Transportation index.
"While the excitement in some parts garners much of the media's attention, the Dow Jones Transports, a key cyclical index, and sometimes a leading indicator for the overall stock market, has quietly rolled over, putting in a lower high and lower low," Arbeter noted.
"In addition, while the DJIA has exceeded its 2011 high, the DJ Transports, at their recent closing high, was about 4% below its 2011 peak."
He continued: "This non-confirmation by the transports is a bit worrisome and cause for some caution.
We note that the divergence between the two indexes is not major from a price and time standpoint, so this is another reason that we only see a small pullback in the overall market."
Source: The Street
It's all about "how much you made when you were right" & "how little you lost when you were wrong"