Company Description: Norfolk Southern Corporation, through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. Its operations consist of transportation of coal, coke, and iron ore products; general merchandise traffic, which consists of automotive products, chemicals, metals and construction products, agriculture and consumer products, and paper, clay, and forest products; and intermodal traffic. Automotive products include finished vehicles and auto parts. Metals and construction products comprise steel, aluminum products, machinery, scrap metals, cement, aggregates, bricks, and minerals. Agriculture and consumer products include soybeans, wheat, corn, fertilizer, animal and poultry feed, food oils, flour, beverages, canned goods, sweeteners, consumer products, and ethanol. Paper, clay, and forest products comprise lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, and clay. Intermodal traffic includes shipments moving in trailers, domestic and international containers, and roadrailer equipment. It handles these shipments on behalf of intermodal marketing companies, international steamship lines, truckers, and other shippers. The company also transports overseas freight through various Atlantic and Gulf Coast ports, as well as provides a range of logistics services. It also operates and leases regularly scheduled passenger trains and commuter trains; acquires, leases, and manages coal, oil, gas, and minerals; develops commercial real estate; telecommunications; and leases or sells rail property and equipment. As of December 31, 2007, the company operated approximately 21,000 route miles in 22 states in the United States and the District of Columbia. Norfolk Southern Corporation was founded in 1830 and is based in Norfolk, Virginia.

Our Analysis: The shares of Norfolk Southern Corp. 'NSC' set a new multi-year closing low on heavier than normal trading volume. This is a bearish trading signal. 'NSC' is a component of the Dow Jones Transportation Average, which appears to be under pressure. The shares of 'NSC' should continue to move lower and test $40.65/share, a point of support established on August 9th, 2006. If the shares of 'NSC' close below that level, then they should continue to move lower and test $37.26/share, the point from which they gapped higher on the open of trading on September 20th, 2005. I see upside resistance on the shares of 'NSC' @ $43.29/share, and have set my stops accordingly at $43.67/share.

It should be noted that that most of the railroad stocks I looked at are under pressure. 'NSC' is just the 1st one that broke below support today. If it continues to move lower today, as I expect it will, then it could cause the other railroad stocks to move lower and break support, which could invite further selling in the shares of 'NSC'..