Materials Sector Update for 06.29.2008

SELECT SECTOR SPDR MATERIALS SECTOR ETF - XLB

Monthly chart shows regular divergence as a higher high was made in May 2008. June saw profit-taking as a new high was made. No clear sell signal/pattern evident on this timeframe.

Weekly chart shows price found resistance at the 1.27 fib level , where profit-taking was evident. The bears managed to take the price down through the short term term LIS and prior high of $44.14. No buy signal/pattern evident on this timeframe as of yet.

Daily chart shows that Friday saw some early bottom pickers, who managed to close the trading session right at the 200sma. Look to next week's trading activity for better sense of short term direction.