Today’s Chart of the Day was shared by Eric Conrads (@conradseric). Today was the worst day for the Consumer Staples sector since January, with $XLP dropping -1.97%. Meanwhile, the Consumer Discretionary($XLY) has held up relatively well since the S&P 500 peaked in late July. As a result, the Discretionary/Staples ratio ($XLY/$XLP in red) is flirting with new 52-week highs. Eric points out that this risk gauge is calling B.S. on the pullback in the S&P 500 (blue). It’s easy to doubt this ratio’s bullish message because the denominator ($XLP) is seemingly reacting to higher yields right now, but… is this time really different?
Getting The Chart Report is as Easy as 1, 2, 3!
Enter your email address, check your inbox, and then relax and absorb all the amazing charts and analysis packed into your new favorite daily newsletter!