Dr. Duru | Jun 25, 2012 05:50PM ET
Cyclical stocks continue to worry me even as the S&P 500 treads water. Charts across a wide swath of related stocks show inabilities to break critical resistance and in some cases are outright breaking down. Here are several representative charts along with brief commentary.
The Materials Select Sector SPDR (XLB) and the Industrial Select Sector SPDR (XLI) both failed at 50-day moving averages (DMAs) last week. XLB is below its 200-DMA again and is back in very bearish territory.
CAT cousin Terex (TEX) is below its 200-DMA again. The declining 50-DMA will likely form an ever tighter ceiling.
FAST is right back to critical support from the lows of the year. It seems almost sure to continue it sell-off.
Be careful out there!
Full disclosure: long CAT; long SI calls; long TEX puts; long SDS and SSO.
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