Industrial Sector At Important Juncture

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.

Tags: $XLI $UXI $SPY