The Dow Jones Transports is on massive resistance.

Previous Post: Market Call, Upper channel correct imminent 

The Dow Jones Transports (DJT) is on massive resistance. The DJT is a proxy leader for the DJI.

In the past very large IPOs have been near the end of a market rally, and it just so happens that Alibaba.com IPO is days away. The rising US dollar is not going to help the SP500 exports either, after all 60% of all revenue for the SP500 comes from outside the USA. 

Is the market about to roll over, tomorrow? No idea, but you should be on your guard for signs of weakness in leading stocks and sectors. We saw earlier on this year a big sell down of Biotechs (IBB), this could be the first act in the process of Mr. Market distributing stock float to the public (i.e. long only mutual funds). The second act could be the lack luster performance of the Russell 2000 vs SP500 in recent weeks, a third act could be the rising US 10 yr interest rate (higher than Spain and Italy 10yr - go figure).

Oops and it seasonally rough for the SP500 between Sept and Nov. Not to mention the FED turining off the QE funding.  

The chart below is a refreshed chart showing how close price is to the upper channel line.
 

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The longer chart.
 

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Investing Quote...
...“Losing money is the least of my troubles.  A loss never troubles me after I take it.  I forget it overnight.  But being wrong – not taking the loss – that is what does the damage to the pocket book and to the soul.”...

                          - Jesse Livermore

.."A market is the combined behavior of thousands of people responding to information, misinformation and whim"..

                          - Kenneth Chang