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The Wall Street Journal

The key to the outlook for the Dow industrials may be the transport sector, which is holding just above a critical support level.

John Kosar, director of research at Asbury Research, notes major support for the Dow transports is at 5149-5191, where the 200-day moving average and an uptrend line starting more than two years ago come in. It represents “a major inflection point for the US stock market.”

With equities also entering a seasonally weak period, Mr. Kosar says a break of support would clear the way for a deep decline that could extend into September.