Dow Jones Transport Average Index

The DJT has always been a fascinating Index to follow. I first came across this Index while I was learning the Dow Theory. It is mentioned in one of his tenets that 'Indices Must Confirm Each Other'. The averages used for comparison were DJIA and DJT. 

The above image shows formation of a Head & Shoulders Pattern in the DJT. This pattern opens up the flood gates for further downside. 

Why a Trader should Care??

Indices move with a lag, but they tend to catch up over time. With the DJT which has topped out in November 2021 and still showing strong signs of further downside, the DJIA is expected to sync with it.