The DJT Index is leading the way for broader US markets to turn increasingly bearish..

The Dow Jones Transportation Index is a good example of what is beginning to appear on broader US markets. That is - after recently giving a false bullish signal on the MACD along with the formation of negative divergence lower-high's on the Stochastic over the past few months - this market is getting ready to potentially head much lower over the next several weeks to several months. Weekly momentum has turned down to increasingly bearish.

The Transportation Index has usually been a good indicator for what's about to happen on broader US markets. A break below psychological 9100 would be further bearish confirmation.

The MACD formed a bullish up-cross during late-Q2, however with no conviction, and has recently moved back to the downside by forming a bearish down-cross a few weeks ago. If the MACD histogram continues its negative expansion, it could possibly undermine other broader US markets. The Stochastic has recently been forming bearish lower-high's since becoming overbought during early-Q3 while building negative divergence for all of 2017. Further bearish confirmation would be a break below the early-3Q16 low of 63.0.