🏆 Today's Chart of the Day was shared by Dylan Tanen (@hihotraders).
- The Transportation ETF ($IYT) logged its second-highest close ever today, sitting less than -0.2% below record highs. It outperformed the S&P 500 by more than +2% today, marking its best relative performance since July.
- Transports have been largely absent from the current bull market, but this vital group is quietly completing a four-year base. Transports could even see sustainable leadership next year if $IYT/$SPY reclaims its 2004 lows.
- A breakout would also satisfy one of the key tenets of Dow Theory, which states that the companies that move the goods (Transports) should confirm the trend of the companies that make the goods (Industrials).
The Takeaway: Transportation stocks are flirting with record levels after outperforming by a notable margin today. $IYT has completed a four-year base, and a breakout would further confirm the current bull market.
