Sector Update (XLI)

The Industrials Select Sector Spider (XLI) fell for the 4th-straight session despite tapping an intraday low of $73.08. Mid-May and upper support at $73.50-$73 was triggered but held. A close below the latter and the 200-day moving average reopens risk towards $72-$71.50 with the beginning of June low at $71.91.

Lowered resistance is at $74-$74.50. Continued closes above $75 and prior resistance from early June would be a more bullish signal for a rebound towards $75.50-$76.25 and the 50-day moving average that still remains in a slight uptrend.

RSI was able to hold major and late May support at 30. A close below this level would signal additional weakness towards 25-20 with the latter representing the late October and December 2018 low. Resistance is at 35-40.