Have The Transports Made A Short Term Top?
This morning, many of the leading transportation stocks are declining lower at the start of the trading session. This broad sector has been very strong since June 24, 2013 when the iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT) traded as low as $106.32 a share. Many traders and investors view the transportation sector as a leading indicator for the stock market. Short term day traders should watch for intra-day support on the IYT around the $115.58 level. The daily chart will have important support around the $109.50 level.
Some of the leading transport stocks that are declining lower today include United Parcel Service, Inc. (NYSE:UPS), FedEx Corporation (NYSE:FDX), Kansas City Southern (NYSE:KSU), and Canadian National Railway (USA) (NYSE:CNI). Traders must watch each transportation stock on an individual basis as they will all have different chart formations.