Recall Dave Kranzler's quote from the July 7th post:
"This index encompasses rail and truck freight shipping, UPS and Fed Ex, and other goods transportation companies. It directly reflects the relative amount of consumer spending and industrial activity in the U.S. economy. Year-to-date this index has diverged by a significant amount vs. the Dow and the S&P 500. This stock sector is telling us that the U.S. economy is tanking."
Whether you agree that the U.S. economy is tanking or not, the fact remains that Transports are badly diverging from the other indexes. Look at the last five times the Transports rallied back to the 50 dma - a prompt reversal lower quickly followed. This chart has all the hallmarks of a topping pattern so time will tell if it will continue to remain a leading indicator for the broader economy.