XLI outperforms Sectors

First of all, let’s point out that XLI – the Industrial Select Sector SPDR Fund – represents an especially important Sector, as Industry Stocks show the health of real economy.

As we can see in the chart, XLI has been trading in a strong bullish channel between its 10-day exponential moving average and the upper Bollinger Band since early June.

This bullish momentum has also been depicted in MACD, which is moving in positive territory and above its signal line.

In addition, the 10-day exponential moving average is moving above the 20- and the 50-day exponential moving averages, another indication of a strong bullish trend.

Finally, XLI’s Relative Strength is generally moving up and has crossed above its 20-day exponential moving average.