Another week with plenty of gyrations in money flow. We have seen these weeks with a lot of sector changes as a preview of a larger market move.
Market: XLE (Energy ETF)
Reason for observation: Change of character
Short-term bias: Neutral
Long-term bias: Neutral
Really messy chart but the out-performance of energy stocks is clearly visible here.
Market: XLP (Consumer Staples ETF)
Reason for observation: Daily bear flag trigger
Short-term bias: Bearish
Long-term bias: Bearish
Sharp breakdown from the daily bear flag setup. Looks like a defensive sector is ready to move much lower.
Another visual to see the outperformance of energy and the under-performance of consumer staples.
A risk-on indicator shooting to new highs. Something under the surface here? Not sure. Much of this gain is obviously due to the sell off of consumer staples. Whether that was a true risk-on tell will be shown in time.