Narrow transportation

Transportation gets a boost as retail slumps

On Tuesday, the transportation sector via iShares Transportation Average ETF (NYSE:) increased its spread against one of its top holdings, United Parcel Service (NYSE:). By beating earnings per share estimates by 6.5%, UPS was able to bring IYT back to both its 200-day moving average and 50 DMA. IYT has now confirmed a bullish phase shift at Wednesday’s close on the 50-DMA.

However, while commodity circulation shows that economic demand is holding up, the retail space continues to stumble in its current trading range.

IYT-XRT-Daily Charts

If we focus on how these two sectors interact with each other, we can look for a correlation between the increase in demand in IYT and potentially seeing retail businesses start to follow in the footsteps of ‘IYT as consumers order more items, thereby increasing the movement of goods. .

That said, what are the key areas to watch for each symbol to hold if it supports this idea?

Looking at the two charts above, first we can observe that the IYT maintains its bullish phase shift on the 50-DMA at $267.32. However, if IYT pulls back to digest its big move higher, it should ultimately hold the 200-DMA at $262.

On the other hand, commercial space [SPDR® S&P Retail ETF (NYSE:)] is stuck between resistance at $83.29 and support at $75.62.

Therefore, if IYT can hold its major moving averages, watch XRT to clear its current trading range and hold above $83.29 before looking for the next push higher.

ETF Summary

  • () 461.45 to erase.
  • () 203.55 to clear.
  • () Waiting for a second close above the 50-DMA at 355.29.
  • {) Held the 200-DMA at 366.19.
  • (Regional banks) 72.27 pivot area.
  • (Semiconductors) 287.73 resistance.
  • IYT (Transportation) Confirmed a bullish phase shift.
  • (Biotechnology) Watch for the 10-DMA to hold at 129.37.
  • XRT (retail) 83.54 resistance.
  • Unwanted Bonds () 106.48. resistance.
  • () Watch to clear 50-DMA at 9:15 p.m.
  • (US fund) 58 support with minor 10-DMA support at 61.56.
  • (iShares 20+ years) 140 supported.
  • (Agriculture) Look to hold over 20.37.
Warning: Merged media would like to remind you that the data contained in this site is not necessarily in real time or exact. All prices for CFDs (stocks, indices, futures) and Forex are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price, which which means that the prices are indicative and not suitable for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur due to the use of this data.

Merged media or anyone involved with Fusion Media will accept no liability for any loss or damage resulting from reliance on the information, including data, quotes, charts and buy/sell signals contained in this website . Please be fully informed of the risks and costs associated with trading in the financial markets, it is one of the riskiest forms of investment possible.