Key stock market indices are trading at all-time highs but one notable sector is lagging – The Transportation Sector and ETF $IYT.
This isn’t a huge surprise, as the transportation sector has already been through a coronavirus lockdown of sorts and may be heading into more red tape as news of the delta variant grows.
That said, the ETF is attempting to rally out of a base. Will this rally be derailed by the delta variant… or will the Transportation Sector $IYT send a bullish signal to the economy that it’s finding its way through? Labor Day weekend is approaching and fall is nearing… this is a critical time/price spot for $IYT.
Note that the following MarketSmith charts are built with Investors Business Daily’s product suite.
I am an Investors Business Daily (IBD) partner and promote the use of their products. The entire platform offers a good mix of technical and fundamental data and education.
$IYT Transportation Sector ETF “daily” Chart
First off, the chart below looks much more bullish due to the rounded arrow. However, that illustration is to point out the potential for $IYT. Note that this all comes with price poorly lagging the broader market… and work needs to be down for any short-term trend trade to trigger.
This is no-doubt a critical time for $IYT. Price is testing its 20/50 day moving averages and is “trying” to turn up out of a base. A clean break above $260 to get on any trading radar. And a breakout above the July highs – $264 – would signal a retest of the spring highs is likely.
On the flip side, a move below $250 and this would trigger another sell signal.
Twitter: @andrewnyquist
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
