Wednesday, December 9, 2009

Dow Ratio Signals Danger for U.S. Stocks: Technical Analysis

(Bloomberg) -- The biggest equity market rally since the Great Depression may fade after the ratio between indexes tracking transportation and utility stocks generated a so-called triple top, according to David A. Rosenberg of Gluskin Sheff & Associates Inc.The Dow Jones Transportation Average that follows airlines, railroads and trucking companies climbed to 10.75 times the level of the Dow Jones Utilities Average on Sept. 11, a multiple last seen in October 2008. The ratio failed to surpass that peak twice in the next two months, forming a triple top that some analysts say signals a slump.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0_HZI99gwnw

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