Chemical Reaction:
The materials space is known best for its precious metals exposure, but it also has a good amount of chemical names within. And they are weighing on the group. The XLB is now on a 9-session losing streak and has declined 11 of the last 12. Perhaps the ETF will be able to catch a breather here and try a spurt higher as it trades into the very round 90 number (notice it is touching the oversold 30 RSI number for the first time since July). Scanning the individual chemical names would show stocks like HUN LYB CE and DOW lower between 30-60% from their most recent 52-week highs. Below is the daily chart of LIN and it may be worth a shot here if it can stabilize after the dragonfly doji candle on Tuesday. Begin with a small starter position and add to if strength starts to materialize. If these daily lows are taken out if could be a lookout below scenario as seen on the WEEKLY as that 50 WEEK SMA is getting pierced to the downside for the first time in more than 2 years here. It has been a reliable actor against the materials, but as a rising tide lifts all boats, a sinking one wrecks havoc.