Hello fellow traders. In this technical article we’re going to take a look at the Elliott Wave charts charts of XLI ETF published in members area of the website. As our members know SPDR Industrial ETF is bullish against the 156.14 pivot in first degree. Recently the ETF made a clear three-wave correction. The pull back completed as Elliott Wave Double Three pattern and made rally as expected.
In this discussion, we’ll break down the Elliott Wave pattern and forecast.
Elliott Wave Double Three Pattern
Double three is the common pattern in the market , also known as 7 swing structure. It’s a reliable pattern which is giving us good trading entries with clearly defined invalidation levels.
The picture below presents what Elliott Wave Double Three pattern looks like. It has (W),(X),(Y) labeling and 3,3,3 inner structure, which means all of these 3 legs are corrective sequences. Each (W) and (Y) are made of 3 swings , they’re having A,B,C structure in lower degree, or alternatively they can have W,X,Y labeling.
XLI Elliott Wave 1 Hour Chart 05.29.2026
XLI is showing 5 waves up from the 168.1 low, suggesting that wave 1 (red), part of the next bullish cycle, has likely ended. Wave 2 (red) is currently in progress. Our analysis suggests that only the first leg of the pullback, wave ((w)) of wave 2 (red), has been completed, unfolding as a double three Elliott Wave pattern.
As our members know, we use the Equal Legs zone to identify the buyers’ area where Wave 2 should complete. We calculate this zone with the Fibonacci Extension tool by projecting the 1.0–1.236 extension of wave ((w)) relative to wave ((x)). In this case, Elliott Wave analysis points to a buyers’ zone around 171.35–170.56.
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Official trading strategy on How to trade 3, 7, or 11 swing and equal leg is explained in details in Educational Video, available for members viewing inside the membership area.
XLI Elliott Wave 1 Hour Chart 06.04.2026
The ETF found buyers as expected. XLI has reacted strongly and eventually we got a break toward new highs. Now, intraday pull backs should ideally keep finding buyers as far as 168.1 pivot holds.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts with target levels in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room
