The S&P 500 
SPX hit new all-time highs last week. But one noteworthy part of the market didn’t participate: transportation stocks.
Today’s weekly chart of the Dow Jones Transportation Average shows how prices inched to a new high but failed to hold. They instead reversed and closed at the lowest level in over a month. The resulting bearish outside candle is a potential reversal pattern.
Second, DJT peaked last November below its previous all-time high from 2021. That’s a potential sign of poor relative strength.
Third is the series of lower weekly highs since late 2024. Why aren’t buyers driving the group to new records?
Fourth, rate of change in the lower study reveals the Transports lost 7.7 percent of their value last week. Aside from the extreme volatility around “Liberation Day,” it was the biggest weekly drop since September 2022.
Finally, there could be implications for the broader market because DJT is often seen as a bellwether for business and the economy in general. (This is often known as “Dow Theory.”) Given apparent weakening of the labor market last week, some investors may see a warning sign in DJT’s price action.
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Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
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SPX hit new all-time highs last week. But one noteworthy part of the market didn’t participate: transportation stocks.Today’s weekly chart of the Dow Jones Transportation Average shows how prices inched to a new high but failed to hold. They instead reversed and closed at the lowest level in over a month. The resulting bearish outside candle is a potential reversal pattern.
Second, DJT peaked last November below its previous all-time high from 2021. That’s a potential sign of poor relative strength.
Third is the series of lower weekly highs since late 2024. Why aren’t buyers driving the group to new records?
Fourth, rate of change in the lower study reveals the Transports lost 7.7 percent of their value last week. Aside from the extreme volatility around “Liberation Day,” it was the biggest weekly drop since September 2022.
Finally, there could be implications for the broader market because DJT is often seen as a bellwether for business and the economy in general. (This is often known as “Dow Theory.”) Given apparent weakening of the labor market last week, some investors may see a warning sign in DJT’s price action.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.