If the face of last week’s sideways price action and almost in a rebellious manner today (May 4, 2021), the Transportation Index is moving higher while the US major indexes are all broadly lower. VIX has shot up over 20 again (over +13% higher) and the NASDAQ is off by more than 300 points (-2.75%) as I write this article. Yet, the Transportation Index is bucking the trends and trading higher.
What Does It Mean When The Transportation Index Bucks The Major Index Trends?
My team and I have often highlighted the Transportation Index in our past research article. The reason we watch this index so closely is that it tends to lead market trends by at least 30 to 60 days. In short, the Transportation Index is a measure of future expectations related to freight, shipping, transportation, and the movement of goods and commodities across the US and across the globe.
Last week my team and I alerted our readers to the current trends and shifting sectors that are getting hotter every day. Technology, Energy, Financials, Industrials and others are experiencing bullish trends we haven’t seen in years. The Russell 2000 ETF, URTY, is starting a new breakout uptrend just after our BAN Trader Pro system suggested the SPY may initiate a new bullish rally. You can read relevant research posts here: RECENT TRIGGERS IN THESE SECTORS SUGGEST US STOCK MARKETS MAY ENTER A RALLY PHASE and TECHNICAL TRADERS ARE USING THE BAN HOTLIST TRIGGERS WITH HUGE SUCCESS USING REGULAR ETFS, LEVERAGE ETFS, AND OPTIONS.
Bitcoin traders and enthusiasts are riding the wave after the incredible rally from $9,000 to $42,000 throughout Q4:2020. It certainly was an incredible run – more than quadrupling in value in less than three months. Now we find ourselves in an early 2021 corrective phase which will end in either another Breakout/Rally attempt or an Excess Phase (Blow-off) Top. This article highlights both potential outcomes because at this stage it is difficult to determine a single high-probability outcome.
Before I continue, I urge readers to review our
How To Spot The End Of An Excess Phase article from November 27, 2020. You can re-read it at www.thetechnicaltraders.com/how-to-spot-the-end-of-an-excess-phase-part-ii/. This is an excellent primer for the content of this current research article.
January 21, 2021 | What’s Next for Bitcoin – $56k or $16k?
Chris Vermeulen Chris Vermeulen has been involved in the markets since 1997 and is the founder of TheTechnicalTraders.com. He is an internationally recognized technical analyst, trader, and author of the book: Technical Trading Mastery. Chris has developed trading strategies that incorporate technical analysis, position-sizing, and risk management to boost performance while reducing portfolio risk.
Bitcoin traders and enthusiasts are riding the wave after the incredible rally from $9,000 to $42,000 throughout Q4:2020. It certainly was an incredible run – more than quadrupling in value in less than three months. Now we find ourselves in an early 2021 corrective phase which will end in either another Breakout/Rally attempt or an Excess Phase (Blow-off) Top. This article highlights both potential outcomes because at this stage it is difficult to determine a single high-probability outcome.