How can we accurately assess the strength behind the gains that has got investors perplexed on which way to move? Long-term growth looks especially feasible as Fed rate hikes look to be delayed for the near future. For this reason, higher debt ratios don't appear as lethal as some would comment. On the other hand, short-term economic weakness has investors worried about global demand and how that will effect inflation and, in turn, payrolls. Currently, the pool of money is circulating slow and appears to be shrinking as emerging-markets are buckling down with the possibility of a recession.
Looking again at the Dow Jones Transportation Averager over the Dow Jones Industrial Average in a ratio analysis, one can see a general market strength indicator. Typically during bullish periods, the transportation sector performs better that the industrials. This chart shows a slight, sudden jump by the transportation index which is highlighted by the blue arrows. This follows an underperformance that marked a bearish movement in the overall market. Here, the chart shows a jump in money flowing into the transportation sector which has been lagging so far this year. The green line shows a trendline with two confirmation bounces that has a very slight positive slope. One of the most important things supporting this rebound is the Chaikin Money Flow indicator and the volume levels. The ratio analysis is supported by volume that is growing with the trend. Systematically, one should see boosts in volume across the board if bullish movements are to continue. We have looked at a general market indicator of bullishness versus bearishness, but perhaps an analysis of the volume behind these bull moves can tell us more about the strength behind the positive movements.
As I finish my 50th post and as you finish reading it, I would like to thank you for all the support from my audience. It has been so helpful receiving the positive words that are offered to me. This blog is not an obligation; instead, it has become a truly pleasant process. Thank you once again for reading, and I hope that my content will continue to improve as I become more educated in my research.