Transports & US Stock indices: telling us anything?

I was at a trading meeting over the w/e and there was some commentary about potential warning signs seen across the US transport sector and so I thought it was high time I checked back in on this sector again. My view is a bit more upbeat than that from the w/e though despite seeing a bit of divergence. Here is what I’m seeing on the major US stock indices and the few ‘Transports’ that I watch and, also, what I’m thinking.

General comment on  the US Stock Indices: The major US stock indices, and their ETFs, all appear to have made Bull Flag-style breakouts on their weekly charts BUT with little supporting momentum just yet. Also, whilst most are above their weekly Cloud, trading volumes are low and declining hinting at a bit of potential bearish divergence. This does not necessarily undermine the bullish breakout moves but it does suggest caution is needed. I’m on the lookout for any uptick with momentum to support this bullish bias.

General comment on the ‘Transports’: I am actually quite buoyed by what I’m seeing across the three ‘Transports’ I watch as they look rather bullish. However, one of the three is showing some divergence suggesting an element of caution is needed.

S&P500 and SPY:

S&P500 weekly: This has closed at a new weekly HIGH and with a Bull Flag breakout but note the lack of ADX momentum for now. Keep an eye out for any ADX uptick though to support this bullish move.

S&Pweekly

S&P500 daily: there is momentum building on the daily chart though so watch to see if this flows through into the weekly chart:

S&Pdaily

S&P500 monthly: I am still looking for a move up to 2,500:

S&Pmonthly

SPY weekly: S&P500 ETF: this, too, has made a bullish breakout but note the lack of momentum here as well:

SPYweekly

SPY weekly Cloud: above the weekly Cloud BUT note the bearish divergence. This may be a warning?

SPYweeklyIchi

DJIA & DIA:

DJIA weekly: This has also closed at a new weekly HIGH and with a Bull Flag-style breakout but there is not much momentum here either:

DJIAweekly

DJIA weekly Cloud: some divergence here too despite being above the Cloud:

DJIAweeklyCloud

DIA weekly: DJIA ETF: A bullish breakout on the DJIA ETF but with not much momentum just yet:

DIAweekly

DIA weekly: DJIA ETF: divergence here too yet above the Cloud:

DIAweeklyCloud

NASDAQ & QQQ:

NASDAQ weekly: A Bull Flag here but not much momentum:

NASDAQweekly

NASDAQ weekly Cloud: no divergence here to speak off though:

NASDAQweeklyIchi

QQQ weekly: NASDAQ ETF: A Bull Flag here too but little momentum just yet:

QQQweekly

QQQ weekly Cloud: NASDAQ ETF: above the Cloud but no divergence:

QQQweeklyCloud

Russell 2000 and IWM:

Russell 2000 weekly: A Bull Flag here but not much momentum just yet either:

RUTweekly

IWM weekly: Russell 2000 ETF: ditto here:

IWMweekly

IWM weekly Cloud: Russell 2000 ETF: a bit of divergence on this index though:

IWMweeklyCloud

TRANSPORTS:

IYT weekly: This transport ETF appears to have made a Bull Flag-style breakout but with little momentum just yet:

IYTweekly

IYT weekly Cloud: watch for any bullish Cloud breakout. No divergence here to speak of:

IYTweeklyCloud

FDX weekly: Fedex looks like it could be heading for a bullish breakout so watch the trend lines for clues. Not much momentum here just yet though:

FDXweekly

FDX weekly Cloud: above the Cloud which is bullish and no evident divergence:

FDXweeklyCloud

UPS weekly: the parcel service area seems to be on the mend with a bullish Flag-style breakout AND bullish momentum!

UPSweekly

UPS weekly Cloud: however, this is a bit of bearish divergence so caution is needed:

UPSweeklyCloud

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