Can The Dow Transports Keep On Truckin'?

For stock market investors, that question isn't a small one. That Dow transports index is up 35% since June 11. And as history has shown, when the transports fly, the rest of the market follows. The transports were up 101 today, or about 0.85%, while the other major indices were pretty much flat.

We are see some mixed signals on Excalibur Pro - our Markov process, which is a momentum indicator, continues to flash strong bullish signals for the index. But some of the technicals, showing the RSI near the overbought level of 70, and the fact that the current index level has completely blown through its major moving averages, suggest a reason for people to catch their breath.