Industrial Pause?
Monday was a risk-off session as energy, staples, and utilities led. Tech took a back seat but the industrials are a group we have been monitoring for their strength for some time. The daily chart below of the XLI trades a bit wide and loose, hallmark bearish traits, but if one looks under the cover there are some individual names that are thriving. CARR, for example, is now above a double bottom trigger of 69.59 taken out on 8/21 and for the time being is ignoring last Thursday’s doji candle. MMM which trades in an opposite manner of CARR, very taut, is now above a bull flag pivot of its own which began at the very round par number and the move above 125 suggests a 150 target is plausible into year-end. To keep a balanced approach the airlines just can not seem to get off the ground, pun intended, and the JETS have been week since the MONTHLY bearish evening star completed in August 2023 (notice doji candle in July). Unless it can CLOSE above 19.06 by Friday it will have recorded its fifth straight MONTHLY decline.