Material Names Looking Heavy

DeMARK update on XLB names

I was doing my weekend scans and noticed that XLB is starting to look a little bit top heavy. I think my medium term on oil names is clear, but these look somewhat bearish in the medium term as well. Some of the largest holdings of the XLB ETF by weight were:

1. Linde PLC (LIN)

2. Ecolab Inc. (ECL)

3. DuPont de Nemours Inc. (DD)

4. Dow Inc. (DOW)

5. Air Products and Chemicals Inc. (APD)

6. Sherwin-Williams Co. (SHW)

7. LyondellBasell Industries NV (LYB)

8. PPG Industries Inc. (PPG)

9. Eastman Chemical Co. (EMN)

10. International Paper Co. (IP)

Below, you can see XLB completed a DeMARK 13 combo into the prior 13 sequential risk levels and price flipped lower on Friday — despite the market trading higher (Dow and Small Caps)

To me, that is pretty sketchy.

LIN 13 sequential at highs.

DOW failure of 100 week and prior gap.

US Steel is confirming this reversal with a Combo at highs and price flip lower.

I think it might be time to go gap hunting on some of these names. US steel downside levels I’m interest in (these are the gaps):

• 25.75

• 22.5

• 21

• 19.5

Here is a full link to a high-res version of the chart above

Remember, not investment advice. Just a chart monkey who knows nothing.