Is there a more important chart than Industrials right now?
— Steven Strazza (@sstrazza) November 23, 2021
Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It’s a chart of the Industrial sector ETF, $XLI, year-to-date. The largest weighted stocks in $XLI include $HON, $UPS, $UNP, $BA, and $RTX. Several key sectors and indexes are retesting their recent breakouts this week. The Industrials sector is one of the more important ones to watch here as it has historically been one of the most correlated sectors to the S&P 500. In a comment to the Chart Report, Steve said “Industrials are my cheat sheet to the overall market direction right now. So far, this is just a classic retest, which is completely normal. If we’re above that ~$105 level, things are probably fine. But, if $XLI fails to hold that level, it would be time to start looking around for other warning signs.”