The industrial group continues to hold its own as it is the third best major S&P sector performer YTD, as the XLI has advanced more than 17% so far in 2019 (interesting is that the XLRE via real estate group has taken over the pole position from technology up 21.1%). Below is the chart of BA, the largest component in the XLI, and although it has been a laggard with the crashes of a couple of its airlines, it may be setting up on the bullish side. As always we need PRICE confirmation, but a falling wedge pattern has taken shape, and Wednesday registered a hammer candle that tested a bullish morning star pattern. It has spent a month below its 200 day SMA, but a move above could really get this name moving, and remember this is by far the highest priced stock in the Dow.
Federal Express has been a name that used to carry heavy weight when it spoke after earnings reports. It is hard to believe this name is down 41% from most recent 52 week highs, and the markets have basically shrugged it off. The last 4 weeks have been down by nearly a combined 20%, and all four CLOSED hard upon their lows. UPS has been acting better down 22% from its recent peak and is up more than 5% this week heading into Friday. FDX does have a compelling chart here as it trades into a bullish morning star pattern completed Tuesday, which happened to be a double bottom near the round 150 number. It is still in no mans land, but one could not fault longs who are looking to take a decent risk/reward shot to the long side.
The railroads have been holding up relatively well versus the airline and trucking groups within the industrial sector, until today (UNP and NSC both fell more than 2%). One name that is hanging in there is GWR, and below is the chart and how it appeared in our 5/31 Industrial Report. It looks good on both daily and weekly time frames, where on the daily it broke above a bull flag pivot of 96, and here we have the WEEKLY chart that is acting well POST breakout from a 93.01 cup base pivot. We know the best breakouts work right away, and this one feels like it is being pulled magnetically to the very round par figure.