Transports Break Out After 4 Years

After four years of no progress, the market is finally signaling that it’s time for Transportation stocks to move forward.

This once-overlooked group is coming back into focus, completing what has been a massive base.

This is what it looks like:

As long as DJT stays above those prior cycle highs, the path of least resistance is higher.

Momentum is building beneath the surface, setting the stage for further upside if buyers continue to step in.

We’ve been on the Transportation train for a while — and for good reason. This group has been showing strong relative strength lately.

In fact, it’s been nearly three months since Transports bottomed on a relative basis.

Notice how that outperformance started right at a key shelf of former lows.

Now, Transports are already making new highs on absolute terms, reinforcing that buyers are firmly back in the driver’s seat.

As long as that holds, I’ll keep looking for opportunities here.

Alfonso De Pablos, CMT

Director of Research, All Star Charts

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