Again, until the general market makes a big move, there really is nothing to see here.


Market: XLF (Financials ETF)

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

Fins moved up 3 spots in rankings but we can see why that does not mean much. Positioned like many other sectors for more downside.


Market: XLP (Consumer Staples ETF)

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bullish

Even defensive sectors showing classic bear flag setups. Do not fade any weakness in defensive sectors.


This chart illustrating why sector work may be unnecessary at this moment. 4 sectors (XLF, XLI, XLK, XLY) are moving in lock step with the general market. Hard to look for strength/weakness with a chart like this.


New illustration here. This is nothing new and many other people view this same exact chart. But viewing the spread between XLY/XLP helps show a risk on vs risk off mindset of active market participants. We try not to go crazy evaluating these kind of charts but it may add value to your style of trading/investing.