Transports Go South Side Early
This morning, the iShares Dow Jones Transportation ETF (NYSE:IYT) is trading lower by $1.13 to $91.77 a share. Since December 14, 2011 the transportation index has been rising steadily higher. This is the first trading day of 2012 that the important index has come under some selling pressure. Short term traders can watch for intra-day support on the IYT around the $91.50, and $90.85 levels.
Some leading transportation stocks that are trading lower this morning include FedEx Corp (NYSE:FDX), United Parcel Service Inc (NYSE:UPS), CSX Corp (NYSE:CSX), and Union Pacific Corp (NYSE:UNP). All of these stocks were trading near important resistance levels or nearing short term overbought conditions, therefore, a pullback in these stocks is not uncommon.