Weak Materials About To Break Dual Support?
Chris Kimble | Aug 17, 2015 12:00PM ET
The above table looks at the 9 S&P 500 sectors' performance on a variety of time frames. Today I'm taking a look at the Materials sector. As you can see, (NYSE:XLB) is the second-worst sector this year, only trailing the hard-hit energy complex.
Could it get worse? The chart below looks at XLB and what could be a very important price point right now.
As you can see, XLB is testing dual support right now and is below its 200-Day moving average.
Even though this sector has been weak of late and this year, if dual support gives way, selling pressure could ramp up. Humbly I feel what materials do from here matters from a micro- and big-picture perspective.
What might do well if XLB breaks support? Bonds could be a beneficiary should it happen.
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