Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Is The Transportation Sector The Markets Silver Lining?

By Michele SchneiderStock MarketsApr 21, 2021 12:22AM ET
www.investing.com/analysis/is-the-transportation-sector-the-markets-silver-lining-200574305
Is The Transportation Sector The Markets Silver Lining?
By Michele Schneider   |  Apr 21, 2021 12:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

On Tuesday, the transportation sector closed in the green, while the rest of the Economic Modern Family closed red.

IYT-Daily Chart
IYT-Daily Chart

The most prominent break of support came from the Russell 2000 (IWM) and the Regional Banking sector (KRE).

IWM fell under support at $218 and KRE fell below its 50-Day moving average at $66.

Tuesday's market also brought a rotation into commodities like gold (GLD), Corn (CORN), Sugar (CANE), and the Invesco Agricultural ETF (DBA).

Investors flocking into commodities could be viewed as a weakening market signal.

It can also be seen as a sign of inflation or at least worry of rising inflation.

While the Federal Reserve is watching inflation based on criteria which does not incorporate food and energy, the agriculture sector tells a different story as food commodities have steadily been rising.

On the other hand, if the transportation sector can hold its current price area, this will show that the demand side of the market is strong.

This makes IYT the silver lining of Tuesday's market and an important indicator to watch going forward.

Therefore, we should watch the transportation sector to add strength to the market if it holds its current price level.

If not, watch for investors to continue to rotate into commodities as fear of a weak market and inflation rises.

ETF Summary

S&P 500 (SPY) 412.31 pivotal area.

Russell 2000 (IWM) Broke 218.83 support.  Next support 213.14

Dow (DIA) Flirting with 338.12 the 10-DMA.

NASDAQ (QQQ330.32 next support area.

KRE (Regional Banks) Broke support at 66.18. Next support level at 63.38

SMH (Semiconductors) 242.33 the 50-DMA.

IYT (Transportation) Needs to hold 259.

IBB (Biotechnology) 146 support. Resistance 155.65

XRT (Retail) next support 86.50 the 50-DMA.

Volatility Index (VXX) Needs to hold over the 10-DMA at 10.20

Junk Bonds (JNK) 108.59 support.

XLU (Utilities) 67.93 high to clear.

SLV (Silver) 24.16 resistance.

VBK (Small Cap Growth ETF) Would look better if it can hold over 276.

UGA (US Gas Fund) 31.55 support.

TLT (iShares 20+ Year Treasuries) Needs to clear 139.75 the 50-DMA.

USD (Dollar) Doji day.

MJ (Alternative Harvest ETF) 19.51 next support from low of 3/05.

LIT (Lithium)Failed to confirm bullish phase over the 50-DMA at 61.97.

XOP (Oil and Gas Exploration) Watching 69.82 as next support area.

DBA (Agriculture) New Multi month highs

Is The Transportation Sector The Markets Silver Lining?
 

Related Articles

Is The Transportation Sector The Markets Silver Lining?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email