DJ Transports – May 09, 2023

Last post on the Transports: https://bartscharts.com/2023/01/18/dj-transports-january-18-2023/

The thesis on the Transports is the ATH is a “BIG TOP.” Thus far, we haven’t really broken down that hard so only TIME will tell.

We like when .382 / .618 retracements are on top of each other and we have that a little lower in the high 10K’s and low 11k’s. This a HUGE target zone for the Transports. IF they slice thru that level then they “should” go down to the ABCD level and then attack the 50 year old trend line .. we break those levels and the corrective drop target (likes to target the previous wave 4 of a lesser degree – guideline NOT a rule) into 2K is certainly a reality. I’m blogging about this now because I have no earthly idea what would cause such a thump .. let’ face it, that’s pretty much a breakdown of the transportation sector, probably globally.

I’m going to stick w/ this count, more than likely getting proven wrong – certainly hope so …

from a technical perspective pay attention to:

• obviously, the count …
• the orange trend line (log) from the monthly, weekly – it appears that is what is holding it up
• the “nested” head and shoulders .. breaking the neckline AND the orange log trend line should start this lower
• .382 from the 90 year low 0f 13.43 is 11,277
• the BUY pattern is down around 8986-9396 –
• net, net we have two very important zones of support and then the looming trendline from 50 years ago.

hope, being a strategy, this analysis is COMPLETELY WRONG