Transports Stocks Have Been Sinking
This morning, the highly followed transportation sector is once again very weak. The popular and highly followed iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) is declining lower by 0.78 cents to $86.47 a share. On November 6, 2012 (election day) the IYT traded as high as $92.38 a share. So as you can see, this has been an incredible decline for the IYT in just nine trading sessions. Short term traders can watch for intra-day support around the $85.70, and $85.00 levels. The daily chart for the IYT will have support around the $83.50, and $80.50 levels.
When the transportation stocks decline it is usually a sign of economic contraction. The opposite is true when the transportation sector trades higher, it is a sign of economic expansion. Many traders and investors will view the transportation sector as a leading indicator for the stock market. Some leading transport stocks that are declining lower today include Fedex Corp (NYSE: FDX), Union Pacific Corp (NYSE: UNP), United Continental Holdings Inc (NYSE: UAL), and United Parcel Service Inc (NYSE: UPS).
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.