Wed May 25, 2016
A reader writes as to why our view is changing on the markets. Indeed, Tom McClellan just changed his opinion in his latest letter last night. He was in the bear camp and now states the bull market roars on. John Murphy at stockcharts feels more confident that the long 'correction' has ended. Let's look at the Transports for clues.
Dow Transports
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The blue dots are the PAR SAR buy sell indicator. It flashed a buy on the Transports yesterday.
If this index registers a weekly close over 8100, the bear case is in disarray. That would be 419 points a 5.5% move from here. That is certainly not out of the question.
Arcbest ARCB
This Arkansas based trucking company was referenced in the refining article we linked yesterday. It completed a five wave advance and then an ABC correction. It is a bit worrisome that it made a new low, a higher low would be preferable, but at least we have a PAR SAR buy signal.
BRKB Warren Buffet
BRKB popped over its 50 day MA and while not shown also generated a buy signal on the PAR SAR.
The DJIA was up about 86 when I last looked it is now 6 31 AM CST pre market openning.
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