Transports Rebound Early
This morning, the Dow Jones Transportation Index is trading higher by 1.02 percent. The iShares Dow Jones Transportation Average (NYSE:IYT) is trading higher by 0.84 cents to $83.59 a share. Often when the transportation index trades higher it is a sign of economic strength and expansion. It is important to note that this important index has been bludgeoned in the month of July. The transportation index made a pivot low on August 9, 2011 along with the major stock indexes. Short term traders can watch for intra-day resistance around the $84.00 area on the IYT.
Other leading transportation stocks that are trading higher this morning include United Parcel Service, Inc. (NYSE:UPS), Union Pacific Corp.(NYSE:UNP), and Delta Air Lines Inc. (NYSE:DAL). As long as the transportation index continues to climb the major stock indexes should hold up well in this very volatile environment. Please understand, these markets should be extremely volatile this week leading up to options expiration which is this Friday.