Chemicals subsector is probably one of my favorites, From the Materials sector it often gets ignored (like not having and ETF!) and shouldn’t. This sector has been out performing for a while now, and often does inside the Materials sector. We hinted to it coming back in favor recently as the shine on metals dulled a bit. That has been a good shift if you made it last month. This is another subsector that not only made a higher low last week, it has been doing so for a while now. The RSI has now tested the 40 level twice while the markets drop hard and barely pierced the 40 level either time showing sellers were not really getting a foothold. The breadth view has seen some weakness, but is holding up better than the Universe as a whole and provide the short-term breadth divergences we look for at the recent lows.  McClellan Summation did fall below zero and will be watched for more weakness, but a cross back over zero and the moving average could be a nice signal to pay attention to.

The Relative Comparatives have been in uptrends, but are all accelerating here showing broad out performance wherever you compare right here while the markets as a whole are searching for their footing.  The Percent Making New Highs/Lows also showed nice shorter and intermediate divergences on the last trendline test we just bounced off. The longer measure did see a downside spike on the last pivot low, but was not a big extreme looking left on the chart.