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Transports Strength Bodes Well For Further Gains

I started to see the first signs of bullishness in the market indexes on Tuesday but the Dow Transports, which I haven’t been paying attention to, looks to have put in a short term bottom two weeks ago. First with volume essentially drying up and with four accumulation days under it’s belt, it’s starting to look more and more bullish everyday.

I almost feel alone in saying that I like the action in the major indexes, especially the Nasdaq with a nice accumulation day today, as most traders seem bearish these days. The Dow rebounded after a successful retest of the recent lows, which I was hoping for a gap down/fill…just didn’t expect the move to take us so low. The morning session wasn’t pretty, but if we can close out the week unchanged or with a slight up move I would say the bulls have managed a big win for the week.

One sector getting ready to hit new highs. Here is a list of stocks in this sector that are at or near their respective highs.