Industrial Force:
The industrials truly have been a force to be reckoned with as the XLI, and looking at its top components shows why. GE, the largest holding at almost 5%, has gained 19 of the last 21 weeks, after breaking ABOVE a bearish gravestone doji candle the week ending 10/27/23. It is now 2% off most recent 52-week highs and is on an 11-week win streak. Notice the heavy volume in 2024 during its run, and we know accumulation is an institutional footprint. The second largest holding in CAT, which has been outshining peer DE seen here, has gained 65% over the last year period (I feel DE could be shorted here right at the very round 400 number as it pauses after attempting to break above a double bottom base with 3 consecutive spinning top candles which indicate a potential change in the prevailing direction). Perhaps the strongest move has been seen by FDX with the bullish island reversal completed with the gap up on earnings on 3/22 after the gap down on the prior report on 12/20/23. We wrote about FDX here, and it is trying to distance itself above a cup base trigger of 284.19. We know the best breakouts tend to work right away so look for follow through the next couple weeks. The daily chart of the XLI is doing exactly what it needs to do. This overall group should continue to outperform for 2024.