I don't spend much time discussing chart patterns with you, as I tend to focus on the indicators.
But sometimes chart patterns are worth pointing out and focusing on. For example, there is a tiny pattern that is developing in some of the industrial names, some of the financials, as well -- but since the financials are all reporting earnings this week, let's stay away from that potential landmine.
For the last few months, several industrial stocks have stalled out. I think the stall out began in the spring, as the growth and tech stocks began to bottom. But I don't think it became that evident, until the early June swoon that we saw in this group.
Take Caterpillar (CAT) for example. That peak just over $230 in March was barely bested in May, so that entire move from March through early June was a giant sideways as I see it. But now look at how last week CAT had a higher low than mid-June. Now it has a flat resistance line just overhead around $220.

We can even look at a bit of a different picture with the other animal, Deere (DE) . A peak in March, a big sideways, a barely higher high and then a swoon. A higher low last week and a flat resistance line just overhead

Now take a look at Cummins (CMI) . It peaked in March, went sideways until June, and then swooned down, to a lower-low. But here, too, we see a higher low last week and now a flat resistance line. I haven't drawn in the longer-term uptrend line dating back to the November low, but that connects with last week's low, as well.

I look at these charts and am reminded that good charts turn bad and bad charts turn good. Do you remember way back in May when no one like growth and tech stocks? I know it's hard to remember, since now everyone likes them again, but let's start with Amazon (AMZN) , the new fan favorite.
Amazon came off that high in April, but really it was a marginal higher high vs. February, wasn't it? And then in May it swooned. But look: Early June brought a higher low and a flat resistance line. Folks were pretty iffy on Amazon until it managed to get over $3,300. Now everyone loves it, but isn't the pattern a little bit similar?

Now let's look at Apple (AAPL) , where I thought a move over $137 would peter out quickly, so I was wrong. But I wasn't wrong when I liked it at the lows. Here, too, we have a sideways stock that went down in early May, made a higher low in early June, had a flat resistance line, and finally broke out, because everyone had given up on it.

All I'm saying is that no one is even focused on the industrial stocks anymore. They loved them all spring. Adored them even. Now? Like they don't exist. And yet those little patterns are showing up. That has my interest piqued.
Elsewhere, I would simply not that the Daily Sentiment Index (DSI) for Nasdaq is now at 89, so if you're wondering how much love big-cap tech has, this is proof it has a lot.
(Amazon and Apple are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)