Even though the Materials SPDR (XLB) is challenging resistance from the September highs, Chaikin Money Flow remains in negative territory. In fact, CMF has been negative throughout October. This shows underlying weakness in the current advance. With XLB stalling near its September highs the last five days, a break below Tuesday's low would argue for a pullback.
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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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