XLY/XLP Ratio, an Important Alt. View

Recently we noted how the XLY/XLP ratio had broken upward from the dome to seemingly challenge the message of the 2003-2007 comparison to the current period (2013-2017). Here is the updated version of the chart we used, complete with the apparent bullish break intact.

xly/xlp ratio

But I took a closer look at this in NFTRH 446. Line charts do not show the in-period cross talk; they only show the period’s (in this case, monthly) closing status. So in-month on May 9, 2017 we see a violation of the bearish analog. Or do we?

Voila! This chart, which is the above chart converted to to candlesticks with the domes untouched from the original, shows plenty of cross talk in both the current situation and the would-be analog. People were probably pretty giddy in 2007 when XLY/XLP faked upward for the last time.

xly/xlp ratio

Just an FYI since I had the other bullish signal hanging out there. Beware those bearing line charts trying to portray a favored message and beware those bearing line charts who’ve neglected to cross reference them with candle charts (like me, until last weekend).

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