Transports Sink Again
The important and highly followed transportation index is once again declining this morning. The iShares Dow Jones Transportation ETF (NYSE:IYT) is trading lower by $1.50 to $90.86 a share. The IYT has declined by over $10.00 since making a 52 week high on July 7, 2011. Many traders and investor follow the transport index very closely because this index usually represents economic growth and expansion. It is important to note that the IYT is now trading below the important 50 and 200 moving averages which puts the index in a weak technical position. The index is short term oversold at the moment. Traders can watch for some minor support around the current level.
Other leading transportation stocks that are declining this morning include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and Frontline LTD(NYSE:FRO). All of these stocks remain weak on the charts at this time, however, they are also very oversold in the near term. Oversold stocks will usually be candidates for short term bounces.