INDU

open  9,689.21

close 9,743.62 up 57.14

day high 9,858.13

day low 9,659.01

today's volume 216,714,005

3mo avg. daily volume 235,746,270

TRAN

open 3,932.40

close 3,906.23 down 26.17

day high 4,021.63

day low 3,872,64

today's volume 24,572,739

3mo avg.daily volume 24,142,638

The markets are rolling over.  After last weeks announcements regarding the 2nd quarter numbers Wednesday and employment numbers Friday followed by President Obama's morning "statements," the indexes responded accordingly last week, as expected.  Today's rally was short lived and immediately sold off.  Volatility was impressive on the hopes and dreams and volume wouldn't exactly promote "dullness" in the markets quite yet.  Although the bobble-heads on MSNBC might be acknowledging that the end is nigh (in the most optimistic way they can muster) I would argue additional volatility at this point.  

Somehow the industrials managed to close up while the transports were down.  Although diverging slightly on the day to day today, the primary and secondary trends confirm each other.  Also, interesting possible head and shoulders pattern forming on the industrials

DAILY OBSERVATIONS

The transportations confirm although the moving averages have converged on the industrials, but not yet on the transports.  Interesting observation, last two times the 50-DMA and 200-DMA were beginning of 2008 and July of 2009, both of which were arguably at times during a shift in the primary trend.

Also, One could argue the secondary movements are showing appropriate corrections between 1/3rd and 2/3rds of highs. 

Because of the volume expressed I could not expect any reasonable deviation from the primary bearish trend in the short run.  "Common Sense" or at best, "guessing" may suggest up-tick in the industrials and transports in the short run simply due to the dramatic declines of late as well as a new quarter kicking off... but the charts disagree.