Are Transports Signaling Good Times Ahead?


The following video is part of our "Motley Fool Conversations" series, in which technology editor/analyst Brenton Flynn discusses topics around the investing world.

May was a horrible month for investors, with the Dow Jones Industrial Average and the S&P 500 both declining more than 6%. While investors watched the Greek situation on a daily basis, worried about decelerating growth in China, and contemplated the impact of a slowing domestic jobs environment, one key economic indicator was actually improving. That measure is relative strength, particularly the Dow Jones Transportation Index relative to the broader U.S. market. In the following video, Brenton dives into the measure and examines why it might suggest better days ahead for investors.

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At the time thisarticle was published Brenton Flynnhas no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendFedEx. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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