I wanted to pass along this chart for my readers to consider. Although the Biden regime announced today that it was going to examine pricing and competition in the rail and sea shipping industry, the transports were already vulnerable. They took it on the chin today; taking out daily technical support around the 100-day sma. It seems that the 200-day sma may be next.
I think the index will trend around the 100-day sma for several days before making its next move. That move will likely trend lower.
If the 10-year UST yield is a predictive indicator, we may be in for some consolidation on the averages. Indeed, the talk on the street regarding the movement in the yield curve is one of confusion. But, I have to believe that all this extra debt that has been generated to goose GDP growth is in the process of being digested. Of course, the average worker will have to eventually eat it as they don’t have the assets to offset the debt millstone.