This morning, all of the leading airline stocks are trading higher. This sector has been fairly strong since mid-March 2012. This is exact time when oil topped out after trading as high as $110.00 a barrel. As you all know, oil is the largest expense for an airline outside of labor costs. Today, light sweet crude is trading lower by 0.72 cents to $82.60 a barrel.    ...

This morning, the important and highly followed iShares Dow Jones Transportation Average ETF (NYSEARCA:IYT) is trading lower by $1.84 to $91.52 a share. This is a 2.00 percent decline for the major transportation index. Traders and investors will usually follow the transport index very closely as a sign of economic growth and contraction.

This afternoon, most of the leading airline stocks are catching a bid higher as the price of crude declines. The current chart pattern on many of the popular airline stocks still signals further declines despite today's bounce. Should oil begin to decline further over the next few weeks that could help the airline sector, however, that is unlikely with the current problems in the Middle East.

The transportation sector is followed closely by most every trader and investor as an economic barometer. When the transportation sector trades higher it is a sign of economic expansion and growth. The opposite is true when the transportation sector declines it is a sign of an economic slowdown and contraction.