Another Industry Group Turning The Corner

One by one, we've seen industry groups move from downtrending prices to uptrending prices.

Several of these uptrends are much more advanced than others, but one that seems to just be turning higher is media agencies ($DJUSAV), which belongs to the communication services sector (XLC). After a long and steady decline that's spanned nearly a year, the DJUSAV gapped up earlier this week to confirm what I believe is a new uptrend:

Enter Dow Jones US Media Agencies ($DJUSAV):

While the price chart shows that gap higher and a much stronger PPO than at any point in the last year, it's really the bottom panel that highlights relative strength that I'm watching. Over the past 10 weeks or so, the $DJUSAV:$SPX price relative chart has been consolidating in a range between 0.105-0.115. A break above 0.115 would mean that media agencies, relative to the benchmark S&P 500, is at a (nearly) 3-month high. That's a signal that suggests meda agencies would be an area to favor in your trading.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.