Chart of the Day - Friday, June 16, 2023
Stalking Industrials $XLI next week. Broke out on the YTD chart with new 52-week highs.
Weekly going back 5 years on the verge. The longer the base...— Jay Woods (@JayWoods3) June 16, 2023
Today’s Chart of the Day was shared by Jay Woods (@JayWoods3). It's a weekly candlestick chart of the Industrial Sector ($XLI) over the past five years. The largest stocks in $XLI include, $RTX, $HON, $UPS, $CAT, and $UNP. Jay points out that the Industrial sector is approaching blue-sky territory after recovering from a -22.5% drawdown. It's already at 52-week highs (on a weekly closing basis), and it's less than 1.5% from all-time highs. It looks primed for a new leg higher, as it's formed a two year base, within a strong secular uptrend. A breakout would be further confirmation of a new bull market, given that Industrials have historically been one of the most positively correlated sectors to the S&P 500.