The Transports Finally Catch A Bid

Published 06/06/2012, 01:34 AM
Updated 07/09/2023, 06:31 AM

The important Dow Jones Transportation Average is finally catching a bid higher today. This leading sector has plunged lower over the past week to a new low for 2012. This sector can be traded by following the iShares Dow Jones Transportation ETF (NYSEARCA:IYT). Today, the IYT is trading higher by 0.76 cents to $87.68 a share. Short-term traders should watch for intra-day resistance around the $88.30, and $89.00 levels. Please understand, this index is very oversold, therefore a bounce should not be ruled out on the daily chart. The overall trend for the transport sector remains down and that tells us that any bounce could be short lived on the daily charts.

Some of the leading transportation stocks that are trading higher today include Union Pacific Corp (NYSE:UNP), FedEx Corp (NYSE:FDX), and United Continental Holdings Inc (NYSE:UAL). Traders should expect this sector to be very volatile over the next few months.
IYT CHART

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