Today, the highly followed Dow Jones Transportation Average (DJT) is coming under pressure again. This leading stock index has declined sharply since August 21, 2012 when it was trading above the 5200.00 level. This morning, the DJT is lower by $45.25 to $4961.92. It is important to note that while this index has been very weak it is short term oversold and bounces can still occur. Many traders and investors will usually view the transports as a leading growth index. Therefore, if the transport index declines it is usually viewed as economic weakness and contraction by many investors. Traders that do not have a chart of the Dow Jones Transportation Average can use a chart of the iShares Dow Jones Transport. Avg. (ETF) (NYSEARCA:IYT). Today, the IYT is declining lower by 0.85 cents to $88.47 a share. Short term traders can watch for intra-day support around the $88.25, and $87.75 levels.
Some leading transportation stocks that are declining lower today include United Parcel Service Inc (NYSE:UPS), FedEx Corporation (NYSE:FDX), CSX Corporation (NYSE:CSX), and United Continental Holdings Inc (NYSE:UAL). All of these stocks will usually trade together, however, the airline stocks are often more affected by the price in crude.