Always consider hidden risks
The Material Sector (XLB): Cheapest since May 2004 ?
September 10 ( From TradingView )
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The Material Sector ETF ( XLB ) started to outperform since
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
Trendlineon 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
Materialial Sector ETF XLB
over SP500 Index ( Blue Line )
21 DMA ( Amber Line )
SP500 Index ( Candle )
Material Sector ETF XLB