Industrial Revolution:

The industrials, via the XLI, scored its best two-week combined gain since the two weeks ending between 11/6-13/20 that rose by a total of 12.6%. That advance back in late 2020 happened to be a flag pole that the ETF started on its WEEKLY chart that was taken out in February 2021. This July successfully retested that breakout. Contributing mightily were transportation-related names, most notably seen in the last 3 sessions with the Dow Jones Transportation Index rising 1200 handles from top to bottom of the range. Airlines were the main exception and the only subsector within the group that lagged. But trucking and rails acted well, with Canadian names firm. UPS recaptured all of its Tuesday earnings losses by the end of the week and then some. Below is the chart of XPO, another stock in the transportation arena and it produced back-to-back double-digit WEEKLY gains. One can enter here with a stop of 55. All the chatter over the new definition of recession, but the action in these stocks may be signaling that the worst is behind us.

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