Bears Caught With Hands in the “Honey” Jar?
The XLI is under a bit of pressure and it makes sense to look at some of the top holdings to see if it may make a stand. Below is the MONTHLY chart of HON and notice in November it recorded a huge breakout in big volume above a cup base. We know the best breakouts tend to work right away so bulls want to see this firm right here. It is not exactly a general in the sector as seen it lagging the last 4 years against the XLI, but it makes up more than 3% of the fund so it can move the needle. The daily chart shows 6 examples of support near the very round 200 number and the 200-day SMA, and Tuesday recorded a bullish engulfing candle and it now has its sights on a double bottom base pivot of 233.81. BA which seems to be a shadow of its former self, could be an interesting long here as it touches the 200-MONTH SMA, something it seems to do every 2 1/2 years. Notice the bullish hammer candle in November to CLOSE above the secular line. And then we have UBER, which still amuses me that it is in the ETF, down 25% from its most recent 52-week highs, and has even been outdone by rival LYFT since August. The recent breakdown below a bearish head and shoulders pattern is worrisome.