An exchange traded fund tracking the closely-watched Dow Jones Transportation Average has been turned away this week at its 50-day moving average, despite strength in top holding FedEx (NYSE: FDX).
The $640 million iShares Dow Jones Transportation Average Index Fund (NYSEArca: IYT) has traded sharply lower along with the overall market. FedEx shares, meanwhile, have held up after solid quarterly earnings.
After marching higher in March and April, the transportation ETF appears to be rolling over. If the selling continues, the next major test is the 200-day average. [Transportation ETF Keeps on Chugging]
Both ETFs were down more than 1% in Thursday’s stock sell-off.