Looking at a chart of the Dow Jones Transportation Index (TRAN), a new trend could be shaping up.

By using simple pitchfork trend analysis, we see that the 4-month downtrend was broken in March ... Potentially opening the door to a new short-term uptrend.

Even with slight profit taking over the past four sessions, the uptrend is not broken yet. At present, the TRAN needs to hold 2,500 to keep the near-term relative trend intact. If the index does; a test of the 200-DMA could quickly become a reality.

Exit is everything.

Mark Whistler

3/31/08