One of the tenets of Dow Theory is that both the blue-chip Dow index and the transports should move in the same direction to keep a market trend in place, he added. “Bad times for the transports probably mean bad times for the market.”
The transportation ETF is testing its 50-day simple moving average, which has provided strong support since the October low in stocks.
Other transportation-related ETFs such as Guggenheim Shipping ETF (NYSEArca: SEA) and Guggenheim Airline ETF (NYSEArca: FAA) have slowed recently on the spike in oil prices.
iShares Dow Jones Transportation Average
