The big sell-off seen in the Dow Transports this week had the bulls running scared. Today, however, the Transports made a move that surely has the bulls a little more comfortable heading into the weekend. At the open this morning, the Transports opened down more than 2%, but the index hit its low for the day within the first few minutes of trading, then trended higher for the remainder of the day and actually closed UP 0.46%.
The six-month daily chart of the Transports index also looks a lot better than it did earlier this morning. As shown below, the index broke sharply through its 50-day moving average today, but it managed to close above its 50-day, which is a support level that needed to hold.
You can now breathe a sigh of relief.