MATERIALS SPDR HITS NEW RECORD -- AVERY DENNISON AND WESTROCK ACHIEVE BULLISH BREAKOUTS -- DOW HOLDINGS HEADING TOWARD 2019 HIGH
MATERIALS SPDR HITS NEW RECORD... Stocks are trading higher today with ten of eleven sectors in the green. The only one to hit a new record is shown below. Chart 1 shows the Materials SPDR (XLB) trading at a new record high. Its relative strength line in the upper box has reached the highest level in a year. The XLB has been led higher by stocks tied to industrial metals like aluminum, copper, and steel. Other leaders have also emerged in chemicals along with containers and packaging. Three of them are shown below.
AVERY DENNISON AND WESTROCK TURN UP... In the specialty chemical group, Chart 2 shows Avery Dennison (AVY) breaking out today to the highest level in seven months. Its relative strength ratio in the upper box has also turned up. In the containers and packaging group, Chart 3 shows WestRock (WRK) rising to a seven-month high as well. Its relative strength ratio in the upper box has risen above trendline resistance.
DOW HOLDINGS NEARS TEST OF RESISTANCE... In the commodity chemicals group, Chart 4 shows Dow Holdings (DOW) climbing more than 2% today to the highest level since January. The stock appears headed for a test of last December's intra-day high. Its relative strength ratio has risen to the highest level in eight months; and is testing a down trendline drawn over 2019 highs. Those three stocks are today's biggest percentage gainers in the XLB.
