Not An Industrial Revolution:
For growth investors if one looks back at the last one month period, it looks pretty rosy. The only two of the major eleven major S&P sectors lower in the time period, are the “defensive” staples and utilities. The third “worst” actor is the industrials, which happens to be a large and diverse group. It is keeping its head just above the UNCH mark, which shows its reluctance to keep pace with an overall market, that seems to be running away from investors. Below is the ratio chart comparing it to the S&P 500, and it is a chart not easy on the eyes. The XLI is lower 2 of the last 3 weeks, and last week registered a big reversal CLOSING 6% off intraweek highs, and at the bottom of the WEEKLY range. The ETF is now 28% off most recent 52 week highs, and has broken beneath a bearish rising wedge at the 62 number, and is struggling to stay above its 50 day SMA. That softness is hiding some strength within, and if one looks they shall find.