The bull market is experiencing its first real test since the 2014/2015 stock market correction. Volatility is high and key sectors are heading lower.
One such sector is the Transportation Sector(NYSEARCA: IYT) and select stocks.
The age-old Dow Theory call for the Industrials and Transports to lead the market (and confirm each others moves). Currently, both are struggling. But the Dow Transports are on the precipice of a major breakdown. Looking at the chart below, you can see that the Transportation Sector ETF (IYT) is attempting to break down below its 12-month trading range and 9-year rising support line.
If the market doesn’t reverse higher soon, this break down will send a negative message to investors about the economy… and the broader stock market.
A move lower would then turn our eyes to the Dow Industrials (not shown) to see if they can hold the January lows (a final line in the sand for Dow Theory followers). Stay tuned folks!
Transportation Sector Chart
This article was first published on See It Markets.com. To see original post CLICK HERE
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