The transports could soon drive the market sharply lower, warns one top technician.
On CNBC's "Futures Now" on Tuesday, Wall Street legend Louise Yamada said that the divergence that is happening between the Dow Jones transportation average and the Dow Jones industrial average could mean a steep correction in the very near future.
"It's the concept of 'Dow Theory' in which the companies that make the products and the companies that transport them are supposed to move in tandem," said Yamada, founder of Yamada Technical Advisors. "Most of the time they do, but the transports have broken support and now we are seeing a kickback into that resistance." The transports are down 8 percent this year while the industrials are up 1 percent in the same period.