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 iShares Dow Jones Transportation Average ETF (NYSEArca: IYT) is down about 20% over the past month. [Transportation ETF Rolls Over]
“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.