In our prior post, we noted that the Transports have been outperforming lately, and below we provide a closer look at the sector's current chart pattern. Back in November, we did a post on the very tight sideways trading range of the Transports for many months in 2012. In the post, we noted, "When an index or stock trades in a sideways pattern for so long, it's ramping up for a big move in either direction. The longer it trades sideways, the more extreme the move will be. Let's hope the next move is to the upside for the Transports."
As shown below, the move has certainly been extreme, and it has been to the upside. This huge upside move has pushed the Transports to a new 52-week high, and now the sector has its sights set on its all-time high reached in 2011, which is roughly 2.3% higher from here.