Wednesday morning, the important iShares Dow Jones Transportation ETF (IYT) struggled to trading into positive territory. Normally, the trading session before a major holiday will often favor a slightly positive day for the major stocks indexes. That move higher was not being seen in the transport sector. Short-term traders can watch for intra-day support on the IYT around the $88.00, and $87.60 levels. The daily chart of the IYT remains in a very vulnerable position by trading below the important 50, and 200-day moving averages. Those moving averages will be followed by many institutional money managers.
Some transportation stocks that are coming under some slight selling pressure today include many of the leading railroad stocks such as Union Pacific Corporation (UNP), CSX Corporation (CSX), and Genesee & Wyoming Inc (GWR) to name a few. Other leading transportation stocks that are showing weakness on the session are Delta Air Lines Inc (DAL), and US Airways Group Inc (LCC). Traders should also remember that the transport stocks such as the airlines will usually be affected by the price of oil. Today, light sweet crude is trading higher by 0.75 cents to $87.40 a barrel.