Transports Lead Markets, Are They Tired Here?
The Dow Jones Transportation Index(DJT) is one of the most highly followed indexes by traders and investors. This afternoon the Dow Jones Transport Index is trading at a new 52 week high on the charts. This index can be easily followed or traded by using the iShares Dow Jones Transportation ETF(NYSE:IYT). The IYT is trading higher by $1.18 to $99.63 a share. Traders must now watch the psychological $100.00 level as the next important resistance point. When the transports trade higher it is often viewed as a sign of economic strength and expansion.
Some leading transportation stocks that are climbing higher today include CSX Corp.(NYSE:CSX), United Parcel Service Inc.(NYSE:UPS), and Union Pacific Corp.(NYSE:UNP). Many of these leading transportation stocks are looking extended at these current levels and may be due to pullback or consolidate soon. The index and many of the leading stocks continue to look strong, however, nothing goes up in a straight line and this may be a spot where the institutions decide to take some profits.