Railroad Stocks Get Derailed
This afternoon, the leading railroad stocks are declining lower. Traders and investors will look to the railroad stocks and the transportation stocks as an economic barometer. When this industry group declines or trades lower it is sign that things could be slowing down in the economy. The opposite is true when this sector rallies and trades higher, it is generally a sign of economic expansion.
Leading railroad stocks such as Union Pacific Corp (NYSE:UNP), CSX Corp (NYSE:CSX), and Norfolk Southern Corp (NYSE:NSC) all trading lower today. These stocks are now trading at or below their daily chart 50 moving average and that is a sign of short term weakness. These stocks all seem to have a little further downside in the near term according to their daily charts.