Material World:
The materials space via the XLB recorded a doji candle last week ending a 4-week win streak which investors must be aware of, but the WEEKLY chart below shows this on a likely path to the very round 90 number in a double bottom base and possibly higher into the second half of 2025. As many feel this sector is dominated by gold, the top 2 holdings in LIN and SHW make up one-quarter of the ETF. SHW looks good as long as it remains above the 345 area and this could be in the early stages of carving out the right clavicle in a bullish inverse head and shoulders pattern. ECL, the fourth largest component, has now put a handle on its double bottom base and enter with a buy stop above a 257.38 trigger. Other interesting developments in the top 10 names include FCX starting to outperform SCCO advancing 21% over the last one-month period, with SCCO adding “just” 10%. Keep an eye on MLM which has reclaimed its 200-day SMA in May and is now bull flagging above the secular line. A decisive move above 550 could see a measured move to 610.