Even though the S&P 500 is trading within 3 percent of an all-time high, there may be some troubling signs within the market. The Dow Jones Transportation Average is now 6 percent off its all-time high set in November 2014, and it has struggled to break through the old high during the rallies.
Because the transportation industry can be considered by many to be a leading indicator of the economy, it has raised yellow flags for the bulls. In comparison, the Dow Jones Industrial Average is only down 3 percent from its all-time high set in March, and it continues to hold the lows of the last two months.
The reason the transportation stocks are important is because the sector is responsible for moving goods around the country and the globe. If the sector begins to struggle, it could be an early indication that demand for goods is starting to wane.
/www.benzinga.com/etfs/sector-etfs/15/04/5379934/time-to-watch-transportation-etfs alt=Time To Watch Transportation ETFs>Full story available on Benzinga.com
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