Material Sector outperforms

Since early June, XLB – the Materials Select Sector SPDR Fund - followed a strong bullish trend on its upper Bollinger Band. Following that, momentum weakened and price moved horizontally till it reached its 10-day exponential moving average – see the blue boxes.

It’s positive that, as soon as XLB touched its 10-day exponential moving average the bulls reacted and they push price gradually higher. The bulls, though, will have to prove their determination is strong enough to push price up.

Our momentum indicator, MACD is in positive territory and above its signal line.

Finally, XLB’s Relative Strength started rising again and has already moved above its 20-day exponential moving average.