One of the noteworthy developments in recent days has been the move in materials. The Materials Select Sector SPDR ETF (XLB) attracted strong buying support Thursday, rose 0.2 percent to 59.76, bringing its MTD gains up to nearly 5 percent, outperformed the S&P by a wide margin. Now the question is whether the rally has more legs? Below is an update look at a trade in XLB.
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.
Chart 1.1 – Materials Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLB bars in green (buy) – see area ‘A’ in the chart. XLB has been on a tear in recent days after the early 2018 correction found support near the 4-year moving average. This week’s upside follow-through pushed the ETF above the 20-week moving average, clearing an important hurdle…Click here to read more.
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