Transports Make New 10 Month High Intra-day
This morning the highly followed Dow Jones Transportation Index is making a new 10 month high. Often when the transportation index makes a new high traders and investors will view this as a sign of economic strength. While the new high for the transports is occurring intra-day it is more important to see the index close at a new high on the daily chart. Should the transport index fail to close at a new high or reverse lower it would be considered a possible failed move. Often this would then be viewed as a bearish sign for the transport index. Traders and investors can trade the index by using the iShares Dow Jones Transportation Index ETF(NYSE:IYT).
Leading stocks in the transportation sector include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and United Continental Holding Inc.(NYSE:UAL). All of these leading transport stocks appear strong at this time, however, FedEx Corp. and UAL are starting to look tired on the daily chart and may need to pullback soon.