Dow Transports giving a bearish sign - Dow Theorists and equities analysts, take note

Failure of the Dow Transports to hold the 3000 level is a bearish sign. If you've been following this issue here (look under the "Transports" label at right to locate quickly posts on this topic), you know that the 3000 level is quite important for this index and probably the broader markets right now.

The volume looks small right now, especially compared to the buying volumes after this index dug a low on the key March 6-9 reversal time frame and after it regained the 2600 level we describe as important. So we'll continue to watch this development for whether this is an orderly or short-term pullback, or becomes something more concerning.

This chart shows the IYT which is an exchange-traded fund for the Dow Transports index.