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Transports Take The South Route

Published 07/02/2012, 01:44 PM
Updated 07/09/2023, 06:31 AM

This morning, the Dow Jones Transportation Average is leading the declines in the markets. The important and highly followed iShares Dow Jones Transport Avg. ETF (NYSEARCA:IYT) is trading lower by $1.00 to $92.33 a share. Short term traders can watch for intra-day support around the $91.60, and $90.80 levels. When the transportation index declines it is often an indication of a weaker economy.

Some of the leading transportation stocks that are coming under selling pressure today include United Parcel Service Inc (NYSE:UPS), FedEx Corporation (NYSE:FDX), Union Pacific Corporation (NYSE:UNP), and Ryder System Inc (NYSE:R). Generally, before a holiday the trading volume will usually be very light; this will likely limit the downside in the transportation stocks today. Trading volume should be extremely light after the lunch hour.

IYT CHART

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