Bearish Transportation Index Chart Signals Trouble Ahead

By Gareth Soloway of In the Money Stocks

President & Chief Market Strategist at IntheMoneyStocks • Dec 16, 2020 at 12:29 PM EST

The Transportation Index ETF (IYT) is signaling trouble for the markets over the next few weeks.

The Transportation Index ETF (IYT) is signaling trouble for the markets over the next few weeks. The bearish Transportation Index had an epic reversal candle on Monday of this week. Since then, the transports have had no bounce, trading sideways as the overall stock market has floated higher.

Historically, the transportation index has been a fantastic leading indicator of market direction. The lack of upside after the epic reversal candle should be a red alert to chart technicians. If this solid signal is telling investors something, it could signal a sell into year-end and early January 2021. Stay alert…

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