There are a lot of ol' timers out there who have their programs set for "not going against the DOW Theory". That means, if the Dow Transports and the Dow Industrials fail to the downside, sell programs will kick in.
The Dow Theory says that the Dow Jones Transports and Industrials must be in sync with each other. For that reason, we will look at the Dow Transportation Index today in order to see what it is doing.
The chart is below and when you look at it you can see that it has been in a trading range since last October ... except for last week's breach.
You should note that there is a negative divergence between the NYA Index (and most indexes) and the DJT. Note that last Friday, the DJT closed below its 7 month trading range and the 8527.68 support line for the second time. This needs to be rectified very soon in order to avoid trouble.
So, make a effort to keep an eye on the Dow Transportation Index.