Automakers released their U.S. sales for the month of September on Tuesday. The numbers mostly showed solid year-over-year gains, thanks in part to hurricane-related vehicle replacement. Industrial shares added to records as strong car sales boosted risk appetite. The Industrial Select Sector SPDR ETF (XLI) rose 0.43 percent to 71.80. The ETF has risen over 15 percent YTD while the S&P added just over 13 percent. Now the question is whether the rally has more legs? Below is an update look at a trade in XLI.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.1 – Industrial Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLI bars in bright green (strong buy). XLI has been on a tear in recent days after the July correction found support at the 2017 rising trend line. This week’s upside follow-through confirmed…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
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