Industrial Revolution:
The industrials were the worst-performing major S&P sector (the only of 11 lower on the day) held down by the soaring airlines and defense names. Perhaps yet another clue that there was going to be a change in administrations, was the action of some of the big players in the ITA. LMT, for example, has now shed almost one hundred handles since an attempted break above a bull flag was met with a doji candle and a spinning top on 10/18 and 10/21. It looks headed back toward the very round 500 number which could possibly start a double bottom base. HII is another one that has felt the pain not long after a double top at the 280 level with a bearish engulfing candle on and back-to-back spinning top candles on 8/1 and 8/29-30. Below is the daily chart of the XLI and notice for 6 consecutive sessions it has CLOSED in the lower half of the daily range and is now back under the intraday lows of the election results. Its WEEKLY chart has still yet to meet its measured move to 155, which could happen into year-end. It is still above the bearish evening star pattern the week ending 10/25 and last week recorded a dark cloud cover candle. Its northward progress will not be a straight line up but a grinding one. Invest accordingly.