Dow Transports Breaking Down

| About: SPDR Dow (DIA)

The Dow Jones Transportation Index has just broken below its 200-day moving average and also made a new low from its prior low in June. The past two days have been pretty ugly for the index as it has declined over 7%. This decline is not a good sign for Dow Theory followers, who would take this move in the transports to imply that the Dow is likely to follow suit: