The iShares Dow Jones Transportation Index ETF (NYSE:IYT) has been on a roller coaster ride as over the past few weeks. Yesterday the IYT rallied sharply higher after a positive reaction to United Parcel Service Inc. (NYSE:UPS) earnings. On January 28, 2011, the IYT closed below it’s daily 50 moving average which is often viewed as a sign of weakness by many technical traders. However, since that time the IYT has been rallying back above the daily 50 moving average. Today the IYT is trading lower by 0.89 cents to $91.65 a share. The IYT will have some short term intra-day support around $91.60. Should this support area fail to hold the next intra-day support level will be around the $90.60 area.
Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.