In June the Dow Jones Transports and the Dow Jones Industrials indices began to diverge. Dow Theory says that the transports lead the industrials, and that divergences in the index are usually reconciled by the industrials catching up with the transports. This has proven the case once again. In early October the Dow Jones Industrial Index peaked out, and has begun falling rapidly. The result has been a spike in the Dow Jones Transports vs. Dow Jones Industrials index in the chart below.