Exchange traded funds tracking the industrial sector have pulled back sharply ahead of quarterly earnings from bellwethers General Electric (NYSE: GE), Caterpillar (NYSE: CAT) and United Technologies (NYSE: UTX) expected later this week.

The stocks are the top three holdings in the $3.7 billion Industrial Select Sector SPDR Fund (NYSEArca: XLI). The ETF has dropped nearly 3% over the past week.

Some big-name industrials such as Caterpillar and Boeing (NYSE: BA) were under pressure on Monday.

“Up until recent months the Industrial Select Sector SPDR Fund had been a pillar of strength as it led the broader market higher. However, that position is now showing cracks as the price and relative chart for XLI finalizes potential top formations,” said Tarquin Coe, technical analyst at Investors Intelligence.

“Price action is fast approaching its June low, as is the relative chart. Breaching those lows, effectively the necklines of the tops, will activate the head-and-shoulder patterns, an event that could precipitate a nasty sell-off,” the analyst wrote in a subscriber newsletter Tuesday.

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