DJTI, Dow Jones Transports

$tran july 17 2013

The Transports are quite similar to the Russell 2000 (below). It has already hit the upper trendline and it is interesting that each successive up move, 1 , 3 and 5 is actually steeper than the one before. The same holds for the “expansion” of the value. Why this index is doing so well remains a bit of a mystery. Part of the answer might be that it does not contain any shipping companies, which is , of course, where most of the transportation occurs.