Transportation stocks have entered a death cross, which means the Dow Jones Transport Average 50-day moving average has dipped below the 200-day moving average. That indicates an even greater lag in the 20-constituent index (DJ-20) with the broader market: The sector is down over 4 percent in just the last month while the S&P 500 is hitting new highs.
Yet while some traders may see a death cross as a warning sign to sell stocks, one market player doesn't fear the dreaded formation.
"The death cross is in progress right now," said Todd Gordon, founder of TradingAnalysis.com, this week on CNBC's Fast Money, adding that it previously happened last year and led to a significant downtrend.
"The question right now is, will this continue," he asked.