Industrials Flirting with All-Time Highs

• Posted by Greg Harmon
• on June 10th, 2016

We have seen the Energy ETF ($XLE) rise up off the mat. And the Materials ETF ($XLB) has been leading a charge higher. Recently the Technology ETF ($XLK) has joined in and the Utilities ($XLU) and Consumer Staples ($XLP) are making all-time highs. Broad participation keeps gathering steam. Who will be next? Perhaps it will be the Industrials Sector ($XLI).

The chart below shows the weekly price action for the Industrial Sector ETF. It had a strong run higher from the end of 2012 until peaking in the beginning of 2015. Since then it posted a “W” shaped pullback and recovery. That touched the 200 week SMA in January and it rebounded back to resistance at 57.30. After a small pullback it is right back at that resistance and forming a bullish Marubozu candle this week.

All of this is just a chip shot from the all-time high at 58.23. With the momentum indicators rising, this might be the next sector to take control. A push above 58.23 would signal a resumption of the uptrend and give a longer term target of 77.50. Maybe more importantly, it would add further breadth to this broad market push higher. Now if Healthcare ($XLV) and Financials ($XLF) could join in the party might get really fun.

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