I Think I Can, I Think I Can:
This children’s video which does contain an industrial slant to it (showing my age here) could be describing the daily chart of the XLI as it pushes toward a potential cup base breakout (it will not be easy to push above the 126ish level as there are a myriad of dubious candles including dark cloud cover, evening star and engulfing all circled). The ETF is now just 2% off most recent 52-week highs and the WEEKLY chart does show the presence of two doji candles recently, which often indicate exhaustion, but for the time being it has been ignoring them. The bulls can point to the last 2 weeks both trading inside the week ending 4/19 that slumped 2%. Referring back to the video in the opening sentence of this paragraph some of the rail stocks need to show a bit better to help guide the XLI higher. The names have more of a concentration in the IYT, with UNP the second largest component. It is now pushing up against its 50-day SMA and if it can push above that line a double bottom pattern with a pivot of 250.46 takes shape. Of the domestic players one can see this is the best of breed since last summer. It has to show the way.