Another week of a lot of sector movement. This is definitely a changing of the guard in U.S sectors. The only thing we can be sure of is more churning in the near term.


Market: XLP (Consumer staples ETF)

Reason for observation: Change of character

Short-term bias: Bullish

Long-term bias: Bullish

A pretty insane multi-week run up for consumer staples. However, the large move down at the beginning of the year followed by this strong rally may hint at some sideways action in the near term.


Market: XLU (Utilities ETF)

Reason for observation: Daily bull flag trigger

Short-term bias: Bullish

Long-term bias: Bullish

Utes beginning the daily breakout, this one could have legs for sure. Watch for a possibly explosive rally to follow.


Again we are seeing past lagging sectors mean reverting in relative performance to the general market.


Money moving out of discretionary and into staples evident and significant by this chart. While this does signal a “risk off” market positioning, the continued strength in technology stocks cannot be ignored.