Dow transports are nearing a bear market after erasing their entire April breakout: Chart of the day, Yahoo Finance, 5/5/26
The Dow Jones Transportation Average (^DJT) closed under its February breakout zone, erasing the entire April push that briefly carried the index to fresh highs near 25,000.
Transports had recently been one of the rally’s better confirmation points — part of the “most hated rally” that was still gaining strength in April.
Now the breakout is gone.
High to low, transports are now down more than 20% from that late-April
INTRADAY peak — and the
CLOSING drawdown is getting uncomfortably close to bear market territory. ((20% down is the criteria for the beginning of a bear market -progree))
The weakness comes at an awkward time for bulls.
The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) might be back to record highs, but transports are one of the old-school checks investors use to see whether the rally is spreading beyond the high-flying megacap leaders.
More:
https://www.msn.com/en-us/money/markets/dow-transports-are-nearing-a-bear-market-after-erasing-their-entire-april-breakout-chart-of-the-day/ar-AA22pVQm
Bolding and all-caps added
Though the S&P 500 has been hitting records again, its advance/decline line — a running measure of how many stocks are rising versus falling — is sputtering. Instead of confirming the S&P 500’s new highs, the breadth gauge is starting to resemble a possible double top.
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