As the bull market carries on into year end, some lagging sectors and stocks are just getting back to their early 2021 highs.
Some will breakout (bullish), while some will find stronger resistance and pullback. For the latter, a move lower may raise the prospect of a double top.
And we are seeing just that on the “monthly” chart of of the Transportation Sector ETF (IYT).
As you can see above, the month is NOT over just yet… however, the prospect of a bearish reversal lower right off a test of the early 2021 high is real.
And look at those long topping tails. Yikes! The transports better find some buyers soon or this laggard may continue to fall behind.
Keep an eye on this one into month end. If it closes near current prices, it will increase the strength of overhead resistance… while raising the possibility of a double top. Stay tuned!
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