Transports also at a Resistance crossroad
Many economists like to look to Transports for a clue on the health of the broad economy. The Dow Jones Transports ETF (IYT) has rallied up to a clear resistance trend line that has been in place for the last two years. The broader pattern is a pennant, which is pretty neutral. A break higher for IYT would support the idea that markets are ready to rally into year end.