Slow and Steady Wins the Non-Confirmation

The lagging and weakening transports remain a thorn in the side of any bull case for a sustained uptrend in the market from here, as classic Dow Theory Non-Confirmation is hanging around even if it has yet to inflict much noticeable damage. 

On the updated daily chart of the Dow Jones Transportation Average, you can plainly see the long-running negative divergence to the Dow Industrials, with no new all-time highs for the transports since late-November 2014. 

Specifically, the rails look to be acting worse than the air couriers and airlines in the sector. And so it needs to be watched closely as to whether the rails are the true "tell" here, after all. 

I still view 8,600 as being the major breakdown line in the sand, repeatedly tested in recent months but perhaps under imminent scrutiny again this week.  

To tie this into other parts of the market, note how TSLA is strong today while KNDI is plunging to fresh lows, again driving home the point the need to be selective within the market, within sectors, themes, etc..