Transportation stocks are followed closely by most traders and investors. This industry group is known as a leading indicator for the markets. In fact, the transports made a short term top on January 16, 2018 which was ten days earlier than the S&P 500 Index top. This just shows how the transports will often lead the major market indexes. 

Since the January 16, 2018 transport top, many of the leading transportation stocks have sold off sharply. United Parcel Service Inc (NYSE:UPS) is a market leading transport stock that has declined by over $19.00 since that transport peak. Today, UPS stock is trading lower by 0.32 to $116.14 a share. 

This stock is still trading above its 200-day moving average at $115.11 so there will be some daily chart support around this area. Should the 200-day moving average fail to hold as support then there should be one more major leg lower for UPS stock price. The next major chart level for UPS will be around the $110.00 level. This area is where the institutional money should defend UPS stock price. Traders should note that this is where the stock was sponsored in late July 2017 and it will likely be a buy area again when retested. This is where I will look to trade UPS stock on the long side.




Nicholas Santiago
InTheMoneyStocks