One of the more noteworthy developments in recent days has been the move in industrial stocks. The Industrial Select Sector SPDR ETF (XLI) underperformed the broader market, fell 0.10 percent on Friday to close at 71.83. The ETF also underperformed the S&P on a monthly and YTD basis. Now the question is whether recent pullback is a pause that refreshes or it’s a beginning of something worse? 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 1.2 – Industrial Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLI bars in red (sell). After a strong run of outperformance since late August, XLI peaked in late October and rolled over. Friday’s downside follow-thorough confirmed…Click here to read more.
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