Industrial Reprieve:
The industrial space last week put up a lackluster performance falling 2.8%. It bested just healthcare and the materials. If one was to peek at the WEEKLY chart this shallow pullback could be a good opportunity. Over the last 4 months, it declined just 2 other times, falling 4.2 and 2.8% in the weeks ending 9/6 and 8/2. Both of those CLOSED at the lows for the WEEKLY range like last week, although this most recent one did complete a bearish evening star pattern, but the fund continued its ascent upward the very next week. Earnings came in which was the main cause of the potential technical damage and the largest holding in GE slumped 9% on Tuesday. It is being comforted at the moment by the 50-day SMA, but it looks vulnerable and is now below the bull flag breakout. Others that disappointed, all on Thursday, included HON which slipped 5%, TXT by 6%, and CARR by 9%. Each of these names looks like it will need time to repair and perhaps that will weigh on the space. The best-case scenario for bulls is for the XLI to trade sideways and not continue its descent lower on the daily chart below after falling every day last week.