Market Overview

Transports Stocks Have Been Sinking

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 preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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