When Divorce Happens: The NASDAQ & Transportation Index Diverge In Big Way Which Can Signal A Weakening Economy

On Friday, June 4, 2021, a very interesting divergence between the NASDAQ and the Transportation Index setup which highlights the uncertainty related to the continued global market recovery trade.  With the NASDAQ rallying over 200 points and reaching levels near critical resistance, near $13,775, the Transportation Index collapsed over -150 points and briefly tested critical support near $15,350.  What would prompt this type of movement in these indexes?

I believe the recovery/reflation trade has already run it’s course and we are starting to move into a complacency phase with regards to future economic activity and output.  Consumers are already fairly settled after the past 15+ months of COVID lockdowns.  They’ve either adjusted to the new work-at-home requirements or they have relocated into areas that allow them to move forward with their lives without having to expend more capital. For those who were not able to make these moves already, the inflationary impact on consumer prices of homes, commodities, food and other items may keep them from making any big financial decisions as they continue to try to deal with higher costs.

“Chris and his team are providing investors with a great road map for the direction of the markets, which is why I am also a paid subscriber to TheTechnicalTraders services and encourage you to consider a subscription as well, The ideal service to supplement your other subscriptions as well as my CommonStockWarrants.com.”-Note from Dudley

WHEN DIVORCE HAPPENS: THE NASDAQ & TRANSPORTATION INDEX DIVERGE IN BIG A WAY WHICH CAN SIGNAL A WEAKENING ECONOMY


Stock Warrants – If Not Now, When? GET STARTED NOW

New Service NOW AVAILABLE – SPAC WARRANT INDEX
Trade Our ‘Basket’ Of SPAC Warrants For Monster Gains

Investors don’t forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research recently referred to Dudley as ‘the top expert in the field with over 40 years of experience‘ with stock warrants.

“I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well.”

This image has an empty alt attribute; its file name is cswDatabase-300x90.png

error: Content is protected !!
Scroll to Top