The transportation sector—iShares Transportation Average ETF (NYSE:)—bounced off $268, closing +.32% on the day.
This was a pivotal level to hold and becomes more important when compared to the rest of Mish’s Economic Modern Family.
Besides IYT, the Family consists of:
Retail—SPDR® S&P Retail ETF (NYSE:)
Regional Banking—SPDR® S&P Regional Banking ETF (NYSE:)
Biotech—iShares NASDAQ Biotechnology ETF (NASDAQ:)
Semiconductors—VanEck Vectors Semiconductor ETF (NASDAQ:), and
The small-cap index —iShares Russell 2000 ETF (NYSE:)
The Family provides an easy way to grasp a quick picture of the overall market direction. As seen in the charts above, IYT was the only member to test its 50-Day moving average.
Moreover, while other members are not far from their 50-DMA, we have paid special attention to the transportation sectors as it shows investors sentiment towards the movement of goods.
The general idea is that if the movement of goods begins to slow, it could be a warning signal for the rest of the market, which relies upon its long-term strength to push...read more...