Always consider hidden risks
The Material Sector (XLB): At the Support Zone?
June 14 2016 ​( From TradingView  )
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​​​​The Situation

​​The Material Sector ETF (XLB) is still within an Uptrend
​Channel that started back on May 19 2016.
(See first chart below - channel)

And as we are getting near testing the 20 DMA (Day Moving
Average) ​on the Material Sector ETF ​(XLB) at 47.19, we are at
​a Major Support Trendline that started back ​since January 20 2016.
(See first chart below - Red Trendline - Ellipse).

The Material Sector ETF (XLB) started to out perform ​​since ​February 1 ​2016 compare to ​the Mighty SP500 ETF (SPY) and still above ​the ​​50 DMA ​(Day Moving Average) ​​on a relative basis (ratio of XLB over SPY)​. ​​​
​(See second chart below - Red line)...

​​But one ​crucial Technical factor is that on a relative basis we are into a huge compression pattern ready to explode.  ​(See second chart below - Blue Trendline - Ellipse)... We will need to monitor that in the next few trading sessions for the out or under perfomance of the XLB over the SPY ETF.

May be the US Dollar behavior will be a must follow to see on which side XLB ETF we will break on a relative basis.

The Material Sector (XLB): At the Support Zone?  $SPY, $XLB  #Trading #investing #spy #SP500 #xlb
Material Sector ​ ETF XLB
over SP500 Index
 ( SPY ETF - Candles )
20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
200 DMA ( Green Line )

Material Sector  ETF XLB
Daily Candles​
​20 DMA ( Yellow Line )
​​50 DMA ( Red Line )
200 DMA ( Green Line )