One good economic indicator (potentially leading) similar to the railroad stocks and other transportation indices is the baltic dry index. This index measures the cost to ship dry goods by sea averaging the price over several worldwide routes. As you can see by the chart, the index tanked hard during 2008 along with everything else. This index was also dear to my heart, because although not a dry good tanker, GMR is an oil tanker stock I used to follow and invest in (several blogs on this site).
Recently the index has broken down from a triple top and/or potential head and shoulders pattern and is tanking hard...as hard and fast as in 2008. This goes along with the theme that the market has peaked in a wave 2 and we are about to have another crazy ride south, eventually taking out our 2009 lows.
One other thing this index was good for is at the 2009 lows, there was positive divergence on this chart, helping to get comfortable that a bottom in the market may have been in place in March 2009 as this index didn't make a new low and in fact didn't see much selling at all that first quarter of 09. Dont put too much weight on this though, as the 2007 top wasn't confirmed by the BDI
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