Transports are taking out a key support level as they are resolving lower from a 12-month distribution pattern. pic.twitter.com/Ha5kTZJVHm
— Alfonso Depablos (@AlfCharts) May 18, 2022
Today’s Chart of the Day was shared by Alfonso Depablos (@AlfCharts). It’s a weekly candlestick chart of the Dow Jones Transportation Average over the past five years. Transports suffered their worst decline in nearly two years today and closed at a fresh 52-week low. More importantly, Alfonso points out that it sliced through crucial support around 14,000. Transports are an important bellwether for both the Stock Market and the Economy. This weakness is nothing new, but it’s gotten worse, and it continues to be a major red flag.