What ANGLE we look at things can be really important.  The Dow and 500 index are facing resistance, so were Railroads and Trucking in the chart below.  I created a post on 9/20, asking if Railroads and Trucking companies were going to “haul the economy to better times.”  (see post here)   Highlighting “bullish ascending triangles.”

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Below is an update in these two key transportation indexes.

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As I shared in the top chart, ascending triangles lead to higher prices roughly 65% of the time.  Looks like the “Power of the Pattern” came true again.  

Why share info like this?  Investors can play these sectors and breakouts in the Transportation stocks represents positive price action, along with FCX  (see post here) and the high yield mutual funds (see new message, high yields).

It is positive price action in these areas that makes the overhead resistance in the broad markets look vulnerable to allowing breakouts!

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