Don't Ignore This Chart!

Airlines go from lagging to leading

After underperforming the S&P 500 in October, the Amex Airline Index ($XAL) reversed course to become a leader in November. This leadership role picked up steam the last three days as XAL broke above consolidation resistance. The indicator window shows the price relative ($XAL:$SPX ratio). $XAL outperforms $SPX when the ratio rises and underperforms when the ratio declines.

091202xal Click this chart for details
Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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