The Dow Jones Industrial Average and Dow Jones Transportation Average pulled back at the end of July. After both the indexes rallied in early August, the Dow Industrials continued the momentum from that initial push to achieve a new all-time high into September. The Dow Transports, instead of moving higher to confirm this new high from the industrials, reversed lower to confirm the lower high from late August. If both the Dow Industrials and Dow Transports achieve new highs, that’s known as a “confirmed bullish” pattern. However, if one index makes a new high and the other does not, then we have the dreaded “bearish non-confirmation” signal. Unfortunately, the weakness in transportation stocks over the last six weeks has resulted in this bearish pattern.