“IYT has underperformed badly this year, up 3% versus some 14% for the S&P 500, but that creates catch up potential, an assumption which is supported by the technical developments,” he said in a newsletter sent Wednesday. “Once the coiling nature of recent months breaks loose, there is likely to be an aggressive move as pent up energy is released. We expect that move to be up given the general uptrend since the 2009 bottom.”
The transportation ETF is facing a key resistance line.
A “positive message would be sent about the economy” if the Dow Jones Transportation Average can break to the upside, according to Kimble Charting Solutions.
iShares Dow Jones Transportation Average
