Transporation ETF Chart (IYT) Starting To Look Bearish
The ETF Professor found an ETF that has broken below its 50-day moving average and that could mean some bearish moves are on the way. The offender is the iShares Dow Jones Transportation Index Fund (NYSE: IYT). Trading around $68.35 as I write this, IYT could soon be testing support at $67.75 and that's not good news.
A couple of consecutive closes below that level could be very bearish for IYT, which the Professor must note is still up $30 from its March low. Burlington Northern (NYSE: BNI) issued a bearish earnings report earlier and other railroad CEO's see a recovery in demand for their firms' services to be tepid at best.
On that basis, IYT could make for an excellent short-term short. The ETF Professor will monitor the situation and perhaps find a way to play this theme with options.
