Defensive sectors sneakily hanging out at the top ranks. Risk on mentality is certainly backing off a little bit from what we have seen recently. However, as we have said, on any general market rally, expect that strength will quickly return to consumer disc. and tech. Rankings in-line with expectations save for the aforementioned.


Market: XLF (Financials ETF)

Reason for observation: Pressing on lower support zone

Short-term bias: Bearish

Long-term bias: Bullish

This action is still extremely bearish in the short-term. No price rejection whatsoever on this potential support zone. Friday’s attempted gap up was faded and closed on lows. Not looking good for fins.


Market: XLU (Utilities ETF)

Reason for observation: New daily highs

Short-term bias: Bullish

Long-term bias: Bullish

Absolute wacky price action but strong nonetheless. Utes have had clear money flow coming in the past few weeks. Whether that will persist is not clear at this time.


These three sectors sure looks like where the strength will remain. All setup nicely based upon the actual price action charts.


Market participants beginning to position a little bit more risk off. Based upon charts such as this and the recent money flow into utes and consumer staples.