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Watch Out For XLI Action On 07/03/2012

|Includes: Industrial Select Sector SPDR ETF (XLI)

Yesterday, the ISM data disappointed many; the figure was 49.7 vs. expected 52.3, and also below the last month's 53.5.

Investors did find some relief in the construction spending figures, that were at 0.9% vs. the previous 0.6% .

If the latest factory orders data comes out positive for the manufacturing sector, US based Industrials could have a grand day. XLI could end up trading in the $36-$38 range.

However, a bad factory orders would be equally bad for XLI. Keep a watch on XLI and all industrials today.

NOte: XLI has 200-day MA of $34, with slightly bullish short-term patterns in 06/29/2012.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.