Some Dow Theory purists were fretting over the steep underperformance of transportation stocks over the summer but now the sector is outperforming the S&P 500 since the beginning of October.

Since Sept. 28, iShares Dow Jones Transportation Average (NYSEArca: IYT) is up 1.5% while iShares Core S&P 500 (NYSEArca: IVV) has slipped 3.1%. [Transports ETF Makes Up Lost Ground]

“It might be about time for the sleeping giant which is the Dow Jones Transportation Average to finally wake up,” writes J.C. Parets at All Star Charts in a MarketWatch article.

He notes IYT has built a massive base for over a year that could provide a foundation for a lift-off. The potential upside is “pretty tremendous,” Parets says. “This looks to me like a monster base with a ton of upside.”

Also from a technical perspective, Kimble Charting Solutions notes the S&P 500 Railroad Index is at the bottom of a rising channel and has formed a so-called bullish falling wedge.

iShares Dow Jones Transportation Average

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