Mark Hulbert: One of these key economic gauges isn’t telling the truth

What’s up with transportation stocks? Or, really, what’s “down” with them?

Even as new all-time highs have been registered by broad-market U.S. indices such as the Dow Jones Industrial AverageDJIA, +0.85% and the S&P 500 SPX, +0.23% , the market’s transportation sector has lagged. The Dow Jones Transportation Average DJT, +0.96% , for example, is more than 6% below its April high, and more than 10% below its all-time high set in 2018.

Dow Theorists will immediately recognize the significance of this divergence: it sets up a potentially bearish “non-confirmation” which, if it continues, could turn this oldest of stock market timing systems negative on the major trend.

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