XLB materials broke 78, the 2021 support; 70 or 57 may be next

The worst may not be over. A 8% inflation is very hard to fight even with monetary & fiscal policy because the FED could only control the demand side & not the supply side of inflation. With the FED making it very clear that it wont stop until inflation comes down, we may be seeing aggressive rate hikes leading to layoffs & demand destruction in the near future & in turn causing a decline in manufacturing & materials.

XLB just lost the 78 (Fib 0.236) impt support since 2021. The next stop to watch very carefully is the Fib 0.383 pivot zone @70. This may come sometime in late August or early September 2022.
Make-or-break zone: if 70 fails, then 64 (Fib 0.50) will offer not much support till 57 which is the pre-pandemic zone. This scenario will end the ABC correction sometime in November or in the last Quarter of 2022.
Not trading advice.