The Dow Jones Transportation Index is one of the most highly followed indexes by most professional traders and investors. This morning the DJT is trading higher by 44.00 points to 4134.00. This index has sold off sharply from the beginning of May and is lower by nearly 14 percent at this time. This index represents economic global growth covering commercial and cargo airlines, trucking, and shipping.
Fedex Corp (NYSE:FDX) is a leading transport stock involved in air and ground freight transportation worldwide. The stock is having a solid move higher today as Fedex Corp is trading higher by 1.10 to $79.79. Intra-day the stock will have resistance around the $80.30 – $80.50 level. Should the stock trade above that area the $81.00 level would be the next important resistance area. The daily chart is still on the low end of the chart and will have resistance around the 82.50 – 83.00 level. Support for Fedex corp on the daily chart is around the $75.00 level at this time.
Ryder Systems Inc (NYSE:R) is a major trucking company that seems to be catching a solid bounce higher this morning. The stock is trading higher by 1.03 to $41.75 today after piercing below its daily chart 200 moving average. The first tag of the 200 moving average if often an important technical support area and today the stock is reacting positive after tagging that level yesterday.
These are just two leading transport stocks that are having a very solid move higher. When the transportation average is trading higher usually the major market indexes will be positive. However, when this index declines or sells off sharply it is important to realize that that is a major negative for the markets. A declining transport index represents contraction in the economy and many traders will key off of it.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
