Railroads Slammed, May Be Topping Out (UNP, CSX, KSU)

The major U.S. railroads are coming under intense selling pressure today as investors continue to fear the economic recovery may be stalling out. Union Pacific UNP is sharply lower by $3.45, or 4.44%, to $74.21. Even more telling is the fact that Union Pacific may be breaking down technically. Earlier this week the stock traded to the $78 level, which was its high from late April and mid-June. The stock has now failed at that level three times, displaying a triple-top that may foretell further weakness. CSX Corporation CSX is off by 4.76% while Kansas City Southern KSU is lower by 5.15%. Railroads are often viewed as an economic bellweather for the variety of goods they ship to business and consumers. Weakness in the rails is often associated with weakness in the broader economy.