Transports are a good indicator of the underlying economy – in a healthy robust economy more goods, commodities etc. are transported and shipped around. This is reflected in transportation stocks, particularly railroads and truckers. Right now they are saying the economy is weakening.
Transports have enjoyed an upwards trajectory for the past five years. However, in 2015 we saw transports violate and break downwards from their long term upwards trendline. Long term trendlines are the most reliable and have the biggest say on future direction. This is not what we want to see in a healthy growing economy and indicates growing weakness.
Of the transports some of the hardest hit and best indicators of the economy are railroads and truckers.