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Bearish on Transports
And just imagine if the Fed remains hawkish? Or if oil prices start to climb again?
Looking at the daily chart of the iShares DJ Transportation Avg Index (IYT), my near and intermediate-term work argues strongly that one or more of the uplegs off of the August low (1,2,3 on the chart) ended at yesterday's high of 85.51, which if accurate means that the ETF has embarked on a decline that at the very least should press into the 82 area, and possibly into the 80-79.50 support area from here.
The key components of the IYT are the FDX (11.4%), UNP (9.1%), UPS (7.3%), BNI (7.6%), OSG (5.9%) and R (5.3%).