TRANSPORTS LEADING DECLINE

They led on way up, setting new ALL TIME HIGHS, but not close to being confirmed by DOW or SPX, now leading on way down. SPX and TRANS both below 200 moving average.

More than just debt ceiling at play, weak retail, GDP, consumer spending and ISM manufacturing data.
Most know the "spending cuts" are mostly control of spendng increases , a statistical play. Congressman saying they voted YES so it would help create jobs, companies would now invest and hire....SURE THEY WILL.

This far into recover we should be closer to 3.6% GDP not flat lined. NOW all of a sudden we will create jobs? IMHO companies may have reached peak earnings, its downhill from here. Data gets revised downard as GDP was years after the fact, the downturn more severe.

Unfunded liabilities not ever mentioned could be 10 X current amount mentioned for deficits. When we get a cross of 50 and 200 and when they both are moving in same direction, that will be IT and longer term trend, and if its down, you DO NOT FIGHT IT, as you don't fight it when they are both rising together, it IS that simple.

D