Technology, Transport, Small-cap Breakout all encouraging near-term

Technical Strategy Video (Recorded Tuesday, November 2nd):

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • Further signs of broad-based recovery happening with NYSE Advance/Decline moving back to new all-time highs
  • Two formerly underperforming groups, the Dow Jones Transportation Average and Russell 2000, both have moved back to new all-time highs
  • Technology just broke out again on an Equal-weighted basis on Tuesday
  • Ethereum push back to new all-time highs should allow this to lead Bitcoin in relative strength in the short run

Small-caps set to outperform given Russell 2000’s move back to new all-time highs

The video in this report is only accessible to members

Transports finally joining SPX, DJIA and NASDAQ back at new all-time highs

The DJ Transportation Average has finally eliminated the Dow Theory negative divergence by following the Dow Jones Industrial Average back to new all-time highs. It’s always an important technical indication when divergences between Industrials and Transportation are eliminated. In this case, it gives more near-term ammunition to the Bulls for a further advance into December

Given the “leading sector” qualities in Transportation, the act of this joining other indices back at new all-time highs is seen as quite positive afte...

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