From the desk of Tom Bruni @BruniCharting
I received a ton of great responses via Twitter and email for this week’s Mystery Chart, so thank you for that.
A lot of you were leaning toward the long side, with different approaches and stops. Some were neutral, but none of you were getting short.
So here’s the actual chart of Mid-Cap Industrials relative to the Mid-Cap 400. To me, the bias is clearly higher. Prices are breaking out to 12-month highs, momentum is overbought, and the 200-day is beginning to rise.
This chart points to continued outperformance from Industrials over the intermediate/long-term and signals that we need to give the space (and Materials) a hard look for additional opportunities on the long side.
Thanks for reading and let us know if you have any questions!