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Industrials ETF (XLI) recently hit a Fibonacci extension level based upon the 2009 lows and the 2011 highs. At the same time this key Fib level was being hit, momentum is reaching levels last seen in 2007.
In June the ETF created a monthly bearish wick, followed by a decline last month, taking it below support line (1) by a small percentage. This support line gains a little added importance with momentum reaching levels last seen in 2007.
Humbly i feel what the top ten holdings of this ETF do going forward is really important. You might want to chart a few of these stocks to check and see if any key support breaks are taking place.
This would NOT be a good time for XLI to spring a leak, because if it does, it would break the support line off the 2009 lows with momentum sky high.