This afternoon, the Dow Jones Transportation Average is trading higher again today. Traders can follow and trade the transportation sector by using the iShares Dow Jones Transportation Average Index Fund (IYT). To put the recent transport rally into perspective, the IYT has soared higher by $14.00 since November 16, 2012.
Today, the IYT is trading higher by 0.70 cents to $100.61 cents a share. This index is now getting overbought on the daily charts, therefore, a pullback would actually be likely very soon. Traders should note that the IYT is hitting the highs made in July 2011 around the $101.60 level. When indexes reach important resistance points they will usually pierce those old highs before pulling back.
Some leading transportation stocks that are trading higher today include FedEx Corp (FDX), United Parcel Service Inc (UPS), Delta Air Lines Inc (DAL), and Norfolk Southern Corp (NSC) to name a few companies in the industry group. Many of these leading transportation stocks are also approaching overbought levels so the entire sector is susceptible to a pullback soon.