Transports Looking Top Heavy
The important and highly followed Dow Jones Transportation Index ETF (NYSEARCA:IYT) has rallied higher since April 10, 2012 when it traded as low as $90.45 a share. This morning the IYT is trading higher by 0.03 cents to $94.69 a share. This ETF looks to have very good resistance around the $95.00 to $96.00 levels. Over the past two months, this has been the area that the transportation index has met resistance. Always remember, it is important for a stock, index, or ETF to prove itself when reaching important resistance levels. The IYT should have intra-day resistance around the $95.50 area.
Some of the leading transportation stocks that are trading higher today include Union Pacific Corp (NYSE:UNP), Norfolk Southern Corp (NYSE:NSC), and United Continental Holdings Inc (NYSE:UAL). All of these stocks are nearing very good daily chart resistance levels which could lead to a short term pullback in the sector.