Tag Archives: Industrial Select Sector SPDR Fund

Trading Strategy – Industrial Select Sector SPDR Fund

Industrials was one of the few positive sectors in the S&P Thursday, with General Electric (GE) jumped 1.8%. GE shares have added 4.3% since September 11, but still remain lower by 21.7% for the year. The Industrial Select Sector SPDR Fund (XLI) rose 0.30 % to close a record high. The ETF has risen more than 13 percent this year while the S&P up about 12 percent. Now the question is ‘will the rally has more legs?’ Below it 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 Fund (weekly)

Our “U.S. Market Trading Map” painted XLI bars in green (weak buy). XLI has been on a tear in recent weeks after the July correction found support at the 2016 rising trend line. This week’s rally pushed the ETF above the summer high, signify…Click here to read more.

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