‘vs. SPY’; Bullish Signs From the Consumer

The Consumer Staples SPDR is breaking down vs. SPY on the weekly line chart. The break below the channel line would magically disappear if the ratio recovers in month for July. But as of now, it’s a breakdown and its indication is risk ‘on’ and bullish.

xlp spy

XLP’s more well-heeled cousin, XLY (consumer discretionary) is rising vs. XLP in would-be negation of a bearish analog we’ve been noting to 2007.

xly xlp

Here is the monthly view, not quite yet having made a higher high to 2015’s high.

xly xlp

XLY/XLP’s candle version is now actually in its 5th month of a break above the dome I drew for it. This is untouched from the chart above, except for the candles vs. line. The breakouts in 2006 and 2007 were reversed sharply as noted by the black candles. The current situation has had chances to reverse and has not done so.

xly xlp

As things stand now, the more defensive Consumer Staples indicators are backing off in line with an ongoing bull market and its animal spirits. Move along, nothing to see here I guess.

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