Industrial Indifference:
Although the industrial group was atop the leaderboard among their fellow 11 major S&P sectors Monday on a YTD basis they are just the 8th best, with one quarter of 2022 in the books down 6%. Looking at the XLI it felt like it had a magnetic pull with the very round par number. For the last one-year period the XLI has traded in a very taut range between 97-108 roughly with the exception of the week ending 2/25 having a long lower wick in a bullish hammer candle. Defense, marine transportation, and aerospace have been standouts, while delivery services, trucking, machinery, and building materials and fixtures have weighed. Traditional places to hide in times of softness within have been the waste plays like WM and RSG, with the former acting better just 2% from most recent 52 week highs. Below we take a look at the XLI and how it is beneath both its 50 and 200 day SMAs, and I feel a move below 99 could see us retest the lows made on 2/24 which recorded a bullish piercing line candle and set off a nice PRICE bump higher.