XLI is underperforming in the short term due to negative technical trends and rotation into the lagging quadrant.
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Industrials is a completely different story. So, industrials was on a relatively okay track and then all of a sudden it hooked around and is now very clearly back on a negative trajectory back deeper into the lagging quadrant.
So industrials went to an underperform outlook for the coming weeks because of this sharp rotation which happened inside improving just before crossing over into leading.
Industrials went the other way and here you see why. You see that we dropped out of that trend channel and got a rapid acceleration lower in price and that has pushed raw strength out of the sideways trading range and that is immediately taking its toll.
You see that momentum is back down below 100. RS ratio has put a new high below 100. This is all kinds of negative for the industrial sector.
What this channel has said about $XLI
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