From SIA Charts - Originally Posted June 20th, 2025
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Yesterday’s report highlighted a notable shift in market breadth, with only 9 of 31 sectors maintaining positive bullish percent readings. This may indicate a transition from broad strength to a more selective and technically uneven environment. Within this context, manufacturing has become an area of concern.

Once supported by broader market momentum, the sector has now moved into an unfavored position from a relative strength perspective, suggesting underperformance relative to its peers. In addition, its bullish percent index has turned negative, retreating from relatively lofty levels. This may imply that a growing number of manufacturing stocks have shifted into bearish formations on their point-and-figure charts. With market leadership becoming more concentrated, the weakening technical posture in manufacturing perhaps reflects diminished sponsorship and rising internal pressure.

After scouring the SIA Manufacturing Index Report and training the eye on relative strength decliners, we discover Lennox International (LII), which is down 12 spots in the last month and 16 positions in the past quarter. It is now a decliner within a sector that itself is also losing relative strength. This is set against a backdrop of a stock that enjoyed the exact opposite for some time, when it was an outperforming name within an outperforming sector. With the SIA matrix overlay tool engaged, we can see the color coding of this green period where shares moved up from $280 all the way to $680 before beginning to consolidate down as far as $500, where they found support on two occasions.



During this period, however, shares have also been moving down the rankings of the reports they appear in, most notably the SIA S&P 500 Index Report. Currently, shares are trading around the $550 level and may be vulnerable to any market pullbacks given both the weak relative strength of the sector and the stock itself.

One final piece of data-driven insight is the near-term measure of relative strength against alternate asset classes, which SIA calls the SMAX score. Here, a reading is taken against a basket of other asset classes and presented as a number from 0 to 10. In the case of LII, that number is currently 0. Resistance for LII may initially be at the 3-box reversal level of $574.46, followed by $609.62 and the top line at $686.53. Support, on the other hand, may initially materialize at $530.71, $500.10, and another level of prior support at $444.08.

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