An exchange traded fund indexed to the Dow Jones Transportation Average has fallen sharply in the recent stock pullback and is another sign the economy is hitting a soft patch.
WSJ.com’s MarketBeat reports that the breakdown in the transportation index has been worse than the Dow industrials and shows investors are worried about a recession.
“The transports are an economically sensitive index and a leadership group so a breakdown says investors continue to price in a recession,” said Bank of America Merrill Lynch technical analyst Mary Ann Bartels, according to the MarketBeat report. [Dow Theory With ETFs]
The iShares Dow Jones Transportation Average ETF rose 3% in Tuesday’s rally in stocks.
iShares Dow Jones Transportation Average ETF
For more information on the transportation sector, visit our transportation category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.