2:20 pm ET: Finally, a day when something is actually happening in the major averages--or rather, one major average. While the rest of them continue to snooze, someone has poked the Dow Transports (DTX) out of its slumber sparking a rally since the opening bell. This is really good news for the bulls as the DTX is viewed as a leader in market direction. A close at or above its intraday high at 513 could spell the end of its downward trending channel. Should that prove to be the case, can a rally in the other indices be far away?
In bond news, Treasury bond funds took a hit as their support levels failed to hold. Longer-term bonds were punished the most as investors are expecting long-term interest rates to rise. Among the funds that took the hit are TLT, TLO, TLH, TIP, IPE, IEF, ITE. US government mortgage-backed securities bond fund MBB and widely held corporate investment grade bond fund LQD also failed support. Holders of any of these securities may wish to take note and perhaps adjust their portfolios accordingly as further downside appears likely.