Industrial Fortitude:

The industrial sector in 2023 represented itself well in 2023, the fourth-best major S&P sector of 11 rising by 16%, bested by just technology, communication services, and consumer discretionary. Will the group be ready to put up another good showing in 2024? Below is the daily chart of the XLI and it sits just 2% off its most recent 52-week highs, with Thursday ending a 4-session losing streak in good volume rising 1.4%, its best daily gain in 7 weeks. Strong showings among its top components like UNP, which has successfully retested a cup with handle pivot of 233.50 and looks like it may be carving out another cup pattern here. BA found some comfort at the very round 200 number on 1/16 and recorded a bullish harami the very next session with a taut trading range. Its altitude is just below its 200-day SMA here, pun intended. UBER, the number 4 holding in the fund, is just above a very short double bottom pivot of 63.63 and is currently dealing with a bearish gravestone doji candle from 1/12. I think this group is headed for a bright 2024.

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