Transports Under Pressure

The iShares Dow Jones Transportation Index ETFIYT has been on a roller coaster ride as over the past few weeks. Yesterday the IYT rallied sharply higher after a positive reaction to United Parcel Service Inc.UPS earnings. On January 28, 2011, the IYT closed below its daily 50 moving average which is often viewed as a sign of weakness by many technical traders. However, since that time the IYT has been rallying back above the daily 50 moving average. Today the IYT is trading lower by 0.89 cents to $91.65 a share. The IYT will have some short term intra-day support around $91.60. Should this support area fail to hold the next intra-day support level will be around the $90.60 area. Nicholas Santiago InTheMoneyStocks.com