Both the Energy (NYSE:XLE) and Materials ETFs (NYSE:XLB) have been leading a charge higher. Recently the Technology ETF (NYSE:XLK) has joined in and the Utilities (NYSE:XLU) and Consumer Staples (NYSE:XLP) are making all-time highs. Broad participation keeps gathering steam. Who will be next? Perhaps it will be the Industrials Sector (NYSE:XLI).
The chart below shows the weekly price action for the Industrial Sector ETF. It had a strong run higher from the end of 2012 until peaking in the beginning of 2015. Since then it posted a “W” shaped pullback and recovery. That touched the 200 week SMA in January and it rebounded back to resistance at 57.30. After a small pullback it is right back at that resistance and forming a bullish Marubozu candle this week.
All of this is just a chip shot from the all-time high at 58.23. With the momentum indicators rising, this might be the next sector to take control. A push above 58.23 would signal a resumption of the uptrend and give a longer term target of 77.50. Maybe more importantly, it would add further breadth to this broad market push higher. Now if Healthcare (NYSE:XLV) and Financials (NYSE:XLF) could join in, the party might get really fun.
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