Cycle Trading

The Transports had a big day on Monday rallying for 1.94%.

The Transports formed a swing low on Monday off of support from the 50 day MA. A swing low at this late stage should mark the daily cycle low. The Transports stopped short of resistance from a multi month trend line. Notice in February that the Transports did briefly break above the declining trend line. But it was too late in the daily cycle for a sustained breakout. But with Friday potentially marking the DCL, a break above this line will signal that the Transports are getting in gear.