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The Material Sector (XLB): Cheapest since May 2004 ?
September 10 ​( From TradingView  )
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​​​​The Situation

​The Material Sector ETF ( XLB ) started to outperform ​​since
​July 27​ ​compare to ​the Mighty SP500 and the ​21 DMA
​(Day Moving Average) ​​turned ​upward on September 1. ​​But one
​crucial Technical factor is that we broke on July 1 the Support
​Trendline​on that ratio (XLB over SPX). We are on a relative
​basis the ​cheapest we ever been since May 2004.​
​​ ( See second chart below - Red and Amber line - Ellipses )...

​​The 20 DMA ​​(Day Moving ​Average - ​yellow line) on the Material Sector ETF ( XLB ) then at 50.43 broke on the downside on June 18 the  50 DMA ​( red line )​ then ​at 50.50, ​ and closed below both, a ​bad technical ​sign​ ​indeed.​ ​​​We had a Death Cross Pattern on July 28.  We did retest the 20 DMA on September 9 but failed to break it at 43.54. Closing price was 42.77 on September 9.
​​ ​( See first chart below  )

​The Material Sector ETF ( XLB ) is still within a downtrend channel that started back on June 18 2015 with 40.71 as support and ​44.09 as resistance. ( See first chart below )

The Material Sector ETF ( XLB ) broke on June 24 a Wedge Pattern that started ​on February 25 2015.
On August 18, it also broke a Major Support Trendline that started back on February 5 2015, a bad technical sign indeed ​​as shown by ​the ​​first ​​chart ​below - ( See first chart below -  Red Trendlines).


We need to break on the upside the 20 DMA on a Daily close to expect a turnaround. But already having started to outperform the Mighty SP500 Index is a first sign of a Bottoming Out process....​​




The Material Sector (XLB): Cheapest since May 2004 ?  $SPY, $XLB  #Trading #investing #spy #SP500 #xlb
RATIO
Materialial Sector ​ ETF XLB
over SP500 Index
( Blue Line )
21 DMA ( Amber Line )​

SP500 Index​ ( Candle )
Material Sector  ETF XLB
Daily Candles​


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