The Dow Transports- Daily Chart
The U.S. Dollar- Daily Chart
The Dollar has also closed above its 10 day MA along with breaking the declining trendline. Furthermore, the Stochastic indicator has revealed the signal line breaking out from oversold levels.
The VIX- Daily Chart
The VIX is a measurement of fear and volitility in the marketplace, but also a contrarian indicator to the overall market averages. The inverse relationship that exists between the VIX and the market averages can confirm certain price action by corresponding signals in both indices. For example, the reversal that has transpired in the VIX, in theory, should confirm a reversal in the market averages (SPX, DOW, Nasdaq, etc.). At this point I see no evidence of a reversal in the Market, but the reversal in the Dollar, the Vix, and the transports could be clueing us in to something much larger forthcoming. Until then, we must classify these signals as "non-confiming."
The S&P Mini- Hourly Chart