Transports are an important part of the overall market, and are often viewed as as one of the many leading indicators/subsets to view for overall market breadth (others include small caps, and many other parts of the overall market). This index made its high in 2018 @ 11,623. Today, Transports are roughly 10,865. The downtrend line from 2018 is sitting @ roughly 11,250.
It would be a great thing for the longevity of this rally – I believe – for Transports to continue moving higher from here. FedEx (FDX), Norfolk Southern (NSC), Union Pacific (UNP), Kansas City Southern (KSU) & UPS make up over 50% of this index.
Source: Bloomberg & Wennco LLC
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