XLB’s JdK RS-Ratio fell below the 100 level early December during another round of selling and currently sits at 98.9, indicating that the ETF remains in an overall down-trend.

The recent rally in equities has failed to lift XLB above its previous high in mid-November, which now remains a serious resistance barrier at about $50 – XLB is trading near $49. Additionally, the recent drop has formed a horizontal support at about $46. Consequently, de Kempenaer argues that XLB will remain range bound over the short-term.

Industrial Select Sector SPDR

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Max Chen contributed to this article.