Industrial Sector At Important Juncture
- Posted by JC Parets
- on May 22nd, 2012
The Industrial space has been under-performing the rest of the stock market all year long. This has been a burden on the S&P500 because a sector like this should be leading the charge, not dragging it down. But if this sector is going to get going, this would probably be where it would start:
This is a chart of the Industrials Select Sector SPDR ($XLI). The $34 level is really what we’re watching. We have a slightly upward-sloping 200 day moving average, the 38.2% Fibonacci retracement off the October lows, and most importantly potential support from former resistance back in October & December:
If this space is going to get going, this would be the most logical area for a bounce to begin. Lower lows below last week’s reversal would be very damaging for the chart of the Industrials. $34 is the number.
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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