Dow Jones Transportation Index is at a pivot point …
This morning, we posted a seven month chart of the Dow Jones Transportation Index. On top of the chart, we plotted a zero based Relative Strength Index (CRSI) with a 30 day setting.
What I want to point out today, is what has happened in the recent past when the CRSI went negative (below zero).
The first two red dotted vertical lines shows how the Transportation Index fell for 10+ days after the CRSI went negative.
Last Friday, the CRSI went slightly negative and recouped yesterday to close slightly positive.
This is now an important pivot point for the Transportation Index where it could see a multi-day down move if the CRSI keeps trending down and re-enters negative CRSI territory.
