Transports Head South
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
This morning, the important and highly followed transportation sector is declining again. Most traders and investors will follow the transports to gauge the heath of the overall economy. When the transports show strength it is a sign of an improving economy. On the flip side, when the transport sector declines it is a sign of economic weakness in the economy.
Traders can follow the transport sector by using the iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT). Today, the IYT is declining lower by 0.10 cents to $103.29 a share. While this ETF is down a lot today it is still negative and continues to be weak from yesterday's sharp decline. Short term traders should watch for intra-day support around the $102.50, and $102.00 levels. The daily chart of the IYT is signaling support around the $99.00 level.
Some leading transportation stocks that are declining lower today include CSX Corporation (NYSE: CSX), Norfolk Southern Corp (NYSE: NSC), Delta Air Lines Inc (NYSE: DAL), United Continental Holdings Inc (NYSE: UAL), and United Parcel Service Inc (NYSE: UPS). All of these stocks should be viewed on an individual basis.
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