Transports Turn Negative
This morning, the iShares Dow Jones Transportation ETF (NYSE:IYT) has faded after a strong gap higher open. The IYT is now trading lower by 0.43 cents to $87.26 a share. Traders should watch for short term intra-day support around the $86.40 level. The transports are highly followed by many traders and investors as a leading indicator for the stock market. When the transports decline it is a sign of economic contraction. The opposite is true when the transports trade higher, it will indicate and economy that is expanding and growing.
Other leading transportation stocks that have faded from the morning highs include FedEx Corp (NYSE:FDX), United Parcel Service Inc (NYSE:UPS), and CSX Corp (NYSE:CSX). These leading stocks will usually bounce and decline intra-day in tandem with the IYT.