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The Transportation Index continues to weaken.  The $IYT is working on its fourth straight lower monthly high.  Today the index is heading for its first close below the 200D moving average since last July.  

In Q2 of this year, after a 144% gain off the 2020 lows, the $IYT reached its highest overbought reading(weeky/MACD) since its inception(2004).  

We expect more downside in the near term.  Initial target=$241-$239/February high/62% retrace of 2021 range. 

We highlighted the $IYT back in early June:  Transports Sending Warning Sign? – This Week on Wall Street | Investment Managers and Traders

No position. 

Not a recommendation to buy, sell or hold.