The Global X US Infrastructure Development ETF (PAVE) has been a source of strength over the past few years. After keeping pace with the S & P 500 in 2023, we think it can generate more meaningful outperformance in the coming months. PAVE is mostly comprised of industrial and materials stocks to leverage U.S. infrastructure development and improvement projects. In absolute terms, PAVE has a long-term uptrend in place with upside momentum having accelerated across timeframes. This can be visualized with the expanding histogram bars in the weekly MACD, which we use as a gauge of intermediate-term momentum. With its latest up-move, PAVE has stopped out both short and long-term overbought “sell” signals, clearing the way for the uptrend to continue higher. While PAVE has seen an impressive rally over the past few months, there is still room for the ETF to continue higher with no resistance left on the chart and no “sell” signals. An intermediate-term measured move projection generates a technical target near $40, and a more aggressive long-term measured move targets about $42. Initial support is now defined by previous resistance from December, near $35. The 50-day (10-week) moving average is also a gauge of support that rises over time as a possible “stop-loss” threshold. In relative terms, PAVE has been an outperformer since 2020 per the uptrend in its ratio versus the SPX. The ratio consolidated in 2023, reflecting in-line performance, but it has seen momentum renewed after a breakout from a triangle formation in December. This supports outperformance from PAVE in the months ahead as the multi-year uptrend in the ratio resumes higher. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC (“Fairlead Strategies”) for informational purposes only. 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