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Transports Plummet

|Includes: CSX, FDX, iShares Transportation Average ETF (IYT), UAL
The highly followed Dow Jones Transportation Index is declining sharply lower again this morning. Traders can look at the iShares Dow Jones Transportation ETF(NYSE:IYT) and see that the IYT is trading lower by 3.50 percent. Whenever the transportation index declines it is often a sign of economic contraction and slowdown in global business. The IYT is still trading above its recent daily chart low made on August 23, 2011 at $75.81 a share. Should the IYT close below that important level on the daily chart that could signal another dose of institutional selling. The IYT will have intra-day support around the $76.00 area.

Some notable transport stocks that are trading lower today include FedEx Corp.(NYSE:FDX), CSX Corp.(NYSE:CSX), and United Continental Holdings Inc.(NYSE:UAL). On a day like today when the major market indexes are all trading sharply lower everything will generally follow the S&P 500 Index. Therefore, traders must try and time all intra-day positions with a bounce in the major stock indexes.

 

Nicholas Santiago

InTheMoneyStocks.com