Relative Strength Of Transports Turns Sharply Higher

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 |  Includes: IYT, SPY
by: Bespoke Investment Group

If you're a follower of the theory that Tranport stocks lead the market, you have to love the recent action in the S&P 500 Transportation group. The chart below highlights the relative strength of Transports versus the S&P 500. When the line is rising it indicates that Transports are outperforming and vice versa when the line is falling. In the last week, Transports have seen a notable reversal in their relative strength. While the S&P 500 is up 1.2% at 2 PM, the Transportation group is up over 2%. And this strength comes as oil is up 5%!

If you're a follower of the theory that Tranport stocks lead the market, you have to love the recent action in the S&P 500 Transportation group. The chart below highlights the relative strength of Transports versus the S&P 500. When the line is rising it indicates that Transports are outperforming and vice versa when the line is falling. In the last week, Transports have seen a notable reversal in their relative strength. While the S&P 500 is up 1.2% at 2 PM, the Transportation group is up over 2%. And this strength comes as oil is up 5%!

Click to enlarge