{"id":135298,"date":"2018-10-11T14:15:01","date_gmt":"2018-10-11T18:15:01","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=135298"},"modified":"2018-10-11T14:02:50","modified_gmt":"2018-10-11T18:02:50","slug":"us-transportation-index-suggests-bottom-may-be-forming","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/10\/us-transportation-index-suggests-bottom-may-be-forming\/","title":{"rendered":"US Transportation Index Suggests Bottom May Be Forming"},"content":{"rendered":"
October 11, 2018<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Our research team, at\u00a0www.TheTechnicalTraders.com,<\/u>\u00a0is alerting our members that the Transportation Index has reached its first level of support near 10,500 and this level may be the start of an extended bottoming formation.\u00a0 If you have been following our research posts, you already know that we predicted this recent downside price swing over 3 weeks ago with our Adaptive Learning Predictive Modeling systems.\u00a0 You will also understand that our modeling systems suggest this move may not end till early November (somewhere between November 8~12).\u00a0 Keeping this in mind, we are now alerting you to be prepared for the following.<\/p>\n

This Weekly US Transportation Index chart highlights what we believe will become support for the US stock markets.\u00a0 The 10,500 level, highlighted by the GREEN horizontal line, is a key support level that goes all the way back to late 2017 and early 2018.\u00a0 This level will likely present strong support for the Transportation Index and, thus, for the US stock markets in general.\u00a0 We do expect the continued downside pricing pressures to test this level over the next few weeks, but we are beginning to think we may be setting up for an extended bottom formation that may include many weeks of volatility and sideways price rotation.<\/p>\n

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If the 10,500 level is breached, secondary support exists at the 10,000 level (only 500 pts below).\u00a0 As dramatic as that move will be, if it happens, this suggests that any attempt to move to near this level could be considered a \u201cwash-out low\u201d price rotation \u2013 a typical bottom formation.\u00a0 At this point, we believe the 10,500 level is holding as we are not seeing extended downside price action in the current market.\u00a0 If the US stock market was severely threatened by internal or external factors, we believe we would have seen much deeper follow-through the day after the massive price collapse.<\/p>\n

What does an extended bottoming formation look like and what should we expect over the next few weeks?\u00a0 Please take a look at this Daily Transportation Index chart that shows an earlier example of extended bottoming and bottom price rotation before a recent upside price move.\u00a0 This example clearly shows how the initial bottom setup (highlighted in YELLOW) forms prior to an extended period or \u201cbasing\u201d or bottoming price rotation.\u00a0 We don\u2019t expect many months of this type of bottoming price rotation.\u00a0 We expect this bottom to setup and form over a period of about 2~3 weeks before a new uptrend begins to form.\u00a0 Overall, this is a good example of how an extended bottom is formed before an upside price move initiates.<\/p>\n

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We urge you to pay attention to our posts and to visit\u00a0TheTechnicalTraders.com<\/u><\/a><\/strong>\u00a0to learn more about how we can help you navigate these markets.\u00a0 Please take a minute to visit our website and learn how we continue to work to assist our members with clear and effective analysis, research and trading signals every day.\u00a0 It really makes a world of difference when you have a dedicated team of researchers using specialized proprietary price modeling systems to help you stay ahead of these market moves.<\/p>

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Chris Vermeulen<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Our research team, at\u00a0www.TheTechnicalTraders.com,\u00a0is alerting our members that the Transportation Index has reached its first level of support near 10,500 and this level may be the start of an extended bottoming formation.\u00a0 If you have been following our research posts, you already know that we predicted this recent downside price swing over 3 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-135298","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/135298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=135298"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/135298\/revisions"}],"predecessor-version":[{"id":135299,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/135298\/revisions\/135299"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=135298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=135298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=135298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}