24 November 2009 – Still watching divergence

ASX Commentary

24 November 2009 – Still watching divergence

Wed, Nov 25, 2009

The Dow Jones Transports continues its ‘non-confirmation’ of recent strength in the majors. This stays as our main concern. The Transports have reversed off a clear horizontal line of resistance three times. An upside breakout would be super bullish, but whilst price meanders below diverging from the big name indices we are not satisfied upside momentum will be maintained. The run into Christmas is is seasonally very strong, but recognized patterns like these haven’t heeded the past this year. Whilst the big name indices have moved onto new highs, the broader markets have been range bound since mid-August.

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Nick Radge - who has written 899 posts on The Chartist.

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