Relative weakness in an ETF indexed to the Dow Jones Transportation Average in early 2012 was a warning sign to investors before the stock sell-off.

Now, however, the iShares Dow Jones Transportation Average Index ETF (NYSEArca: IYT) is outperforming the market and giving bulls confidence this week’s equity rebound is sustainable.

In February, some technical analysts said IYT underperforming the S&P 500 was a cause for concern. [Transportation ETF Performance Raises Flags]

U.S. stocks topped off in April before the May sell-off on Europe’s lingering debt crisis. [Transportation ETFs Send a Warning]

“The iShares DJ Transportation Average ETF (IYT) has outperformed since late March. The relative trend versus the S&P 500 is still rising and should continue given the positive price action,” said Tarquin Coe, Investors Intelligence technical analyst, in a note Friday.

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