Is the Transportation Sector Starting to Lead?

April 17, 2023

Mish's Daily

By Mish Schneider

Over the weekend we covered the weekly charts of the Economic Modern Family.

Given that yields begin this week higher.

Given that earnings season kicks into gear with banks, the weakest sector so far, surviving.

Given that the seasonality of April point bullish for the S&P 500.

Given all of that, we have a keen eye on our Tran.

The ETF (IYT) looks interesting on the Daily chart.

Above the 200-day moving average (green) yet below the 50-DMA 9Blue), IYT is compressing at a critical juncture.

Furthermore, momentum according to our Real Motion Indicator shows no divergence yet does have some upward movement along with price.

Given the importance of our demand sector of the Family, what else needs to happen?

If you thought to yourself Mish will probably show the 23-month moving average for IYT-gold star!

Last week, Transportation (IYT), closed over the 50-week moving average and is in a bullish phase.

The monthly chart though, is key.

Should IYT breakdown below 223, I would take that to mean caution.

However, should IYT clear 240 and hold, especially if the April positive seasonality factor kicks in?

Then, our Tran, the trains, planes and automobiles sector, could defy at least for a while, the Sell in May platitude crowd.

For more detailed trading information about our blended models, tools, and
trader education courses, contact Rob Quinn, our Chief Strategy Consultant, to learn more.

You don’t want to miss Mish's 2023 Market Outlook E-available now

NOT TOO LATE Click here if you'd like a complimentary copy of Mish's 2023 Market Outlook E-Book in your inbox.

Get your copy of
Plant Your Money Tree: A Guide to Growing Your Wealth

Grow Your Wealth Today and Plant Your Money Tree!

"I grew my money tree and so can you!"- Mish Schneider

Mish in the Media -
All clips here

Final Bar Stockcharts Dave Keller 04-13-23

CMC Markets 04-12-23

Yahoo Finance 04-12-23

Special Webinar on What Traders Can Expect in 2023 with Bob Lang and Mish 04-11-23

Rosanna RoPodcast 04-07-23

Business First AM 04-11-23

Business First AM A Trade 04-06-23

Making Money with Charles Payne 04-06-23

Business First AM 04-05-23

Madam Trader Podcast 03-20-23

Coming Up:

April 19 Closing Bell Cheddar TV

April 20 Benzinga Pre-Market Prep

April 20 Live Coaching Complete Trader

April 24-26 Mish at The Money Show in Las Vegas-2 presentations and a book giveaway

May 2-5 StockChartsTV Market Outlook

ETF Summary

S&P 500 (SPY) Tight range to watch this week 412-415

Russell 2000 (IWM) 170 support- 180 resistance

Dow (DIA) Peeking over the 23-month MA 336-impressive if holds

Nasdaq (QQQ) 312 support over 320 better

Regional banks (KRE) 41.28 March 24 low held and now has to clear 44

Semiconductors (SMH) 258 resistance with support at 250

Transportation (IYT) 219-228 the wider range to watch

Biotechnology (IBB) 130 major pivotal area-135 resistance

Retail (XRT) 58- 64 trading range to break one way or another

Improve Your Returns With 'Mish's Daily'

Michele 'Mish' Schneider

Every day you'll be prepared to trade with:

  • Unique insight into the health and future trends in markets
  • Key trading levels for major ETFs
  • The 'Modern Family' advantage
  • Actionable trading ideas in stocks and ETFs across all asset classes
Subscribe Now!