The harder they fall, the bigger they bounce. The Materials SPDR (XLB) led the sectors lower by declining around 15% from high to low the prior three weeks. In the process, the ETF was down 11 of the last 15 days. After becoming oversold on Friday (see RSI), the ETF is bouncing with a 3% gain on Monday afternoon.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. 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.
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