Industrial Stocks Rally Sharply
09/06/2010 12:01 am EST
I feel the Industrial sector is one of the key groups for a healthy stock market and economic recovery. On August 25, the Industrial Select Spyder ETF (XLI) just slightly violated the July lows, but it rallied sharply last week. Friday’s close was above the converging 50- and 200-day MAs. Next resistance is in the $31 area and the major 61.8% retracement level. Using the same methods as discussed in today’s Trading Idea of the Day, if the rally from the lows at point c is equal to the rally from a to b, the Fib targets are just above $32.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.