Transportation Clues:
When one wants a good gauge of how well the economy is doing it makes sense to take a look at the IYT. It still is somewhat comical that UBER is the top holding in the ETF at more than 18% and it is trying to keep in touch with its bull flag breakout above the round 80 number here. Rounding out the top 5 is UPS, which we will examine later in this note, and the rail stocks including UNP and CSX and the trucker ODFL. ODFL is approaching the very round 450 number for the third time since in the last month and a break and most importantly a CLOSE above the bull flag there would carry a measured move to 525. The DAILY chart below of the IYT shows some constructive action even amid some bearish candles including a bearish gravestone doji candle on Wednesday. The MONTHLY chart has a nice look to it as well as it is now comfortably above a cup base pivot of 68.43 in a pattern almost 3 years long. The breakout carries a measured move to the very round 90 number and notice how the depth of the cup successfully retested resistance from 2018-2020.