Transports Continue To Give Mixed Signals
The Dow Jones Transportation ETF (NYSEARCA:IYT) is one of the most important charts that any trader can follow. Many investors believe that the transportation index should lead or confirm the Dow Jones Industrial Average in order for the markets to continue to climb. Lately, the IYT has pulled back from it recent high made on March 19, 2012 at $96.22. This leading ETF is still trading above its daily chart 50 moving average which puts the ETF in a position of strength. On the flip side, the IYT has not made new highs with the Dow Jones Industrial Average. Short term traders should watch for intra-day support on the IYT around the $93.60, and $93.15 levels.
Some leading transportation stocks that are trading lower include FedEx Corp (NYSE:FDX), Union Pacific Corp (NYSE:UNP), and Norfolk Southern Corp (NYSE:NSC). All of these leading transportation stocks remain in a trading range on the daily charts. This tells us that the transportation sector is giving us mixed signals at this time.