Starting almost a year ago, Transportation stocks started falling harder than the broad markets. (See table directly below).
As you can see in the table above, the Transportation Index ETF (IYT) was much weaker than the broad markets from 3/23/15 until 1/20/16, falling in price almost three times as much as the S&P over this time frame. This rather weak performance, caught our attention last month, as we like the idea of buying low and selling higher.
Over the past 6-weeks, IYT has bounced off support and has reflected absolute and relative out performance of the broad markets. The table below reflects that IYT has almost tripled the gains of the broad markets over the past 6-weeks.
The transports led the market on the way down, falling almost three times as much from early 2015 until 6-weeks ago. Since then the Transports have almost tripled the broad markets on the way up (see table above).
At this time, IYT is attempting to break above, 1-year falling channel resistance at (2) above. IYT has been a leader on the downside and upside over the past year. We humbly feel what IYT does at falling channel resistance, could send an important message to the broad markets.
