The Transportation Sector index is made up of companies such as: DAL, UPS, UNP, CSX, NCS, FDX, and CHRW. This sector dropped and retraced 75% of the bull market gains from 1990-2007. Price has reclaimed the 50% level but remains well below the 1×1 descending angle. Price has had a nice bounce but the chart shows no evidence that the long term bull market will continue. My expectation is that the bounce is almost complete and a test of the March low will follow.
The Trucking Industry index looks in better shape, which is interesting. Price is above the 1×1 angle. I do not expect to see the index move up due to the volatility for the past year. But it is somewhat amazing that the industry has held up so well.
The Air and Freight Delivery Industry index is below the 1×1 angle but is strong in the same way as the Trucking index.
If the market continues higher, then companies in the Trucking and Freight industries will do well. If the market has put in an intermediate term high then these industries will fall with the total market.
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