1 December 2009 – Watch the Transports

Very strong evidence that the US aren’t concerned with the events of Dubai, albeit that’s their way of ignoring everyone else. The US market also got a kick along from the RBA rate hike yesterday. Its viewed in a positive light because it portends that we’re well on the way to healing from last years woes. The most important technical point is the Dow Jones Transports. On three separate occasions its rejected a stiff line of resistance. We mentioned that if it can break through that line that (a) the non-confirmation would be revoked, and (b) signal a very bullish move. The Transports came very close to breaking that resistance yesterday. Another big night up will do it. So technically we’re getting close to bullish confirmation at a time that is seasonally strong.

Tags: ASX, ASX stocks, Dow Jones, S&P 500