Airlines Look Heavy Here

Above is a daily chart of the Airline index (XAL). On Wednesday and Thursday the index tested its 50 day moving average and couldn't get above it. Notice the stochastics crossed on Friday after being in an overbought level.

In the lower pane is a ratio line of the XAL vs the S&P. The ratio line is making new lows which is an indication of how weak this group is when compared to the overall market.

In my opinion this is a pullback to short within a downtrend and that is why I shorted a few airline stocks on Friday.