Transportation Sector Resilience Could Set the Stage for a Broader Market Rally

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Stocks Analysis by Michele Schneider covering: iShares Transportation Average ETF. Read Michele Schneider's latest article on Investing.com

“Bulls want to see IYT hold above its 50-WMA. Otherwise, we believe IYT can get closer to the 200-WMA, but it will not fail it again.”Typically, when one leads, the others will follow or the very least, will hold up.

Since then, in the second ½ of 2024 we now price in interest rate cuts, a slower economy, and an election where both parties want US reshoring.What we do assume is that if Transportation holds up at these levels, a much broader rally with more sector participation is likely.I love it when the chart tells the story rather than when the pundits tell you their story without consulting the charts.The phase is accumulation as the 200-DMA sits above the 50-DMA.

For this week, watch this sector and you will be able to tell your own story based on IYT either pushing higher, or failing last Friday’s low.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.

 

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