Consumer Staples Sector ( XLP )

FINANCIAL ICEBERG

Always consider hidden risks

TECHNICALS

The Consumer Staples Sector - XLP: New High Ever but...
July 6 2016 ( From TradingView )

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The Situation

The Consumer Staples Sector ETF (XLP), is performing quite well
to reach a new high ever as shown by the first chart below.
(Ellipse - Top Right Corner)

Some Techncial History

On February 22 2016, we had the 20 DMA (Day Moving Average -
Yellow line - 1rst chart below) crossed above the 50 DMA (Red Line -
1rst chart below): a good technical sign for the Consumer Staples Sector.

We broke on March 3 2016 a Major Resistance Trendline that started since January 22 2015 for the Consumer Staples Sector ETF (XLP). (See first chart below - Thick grey line)

And on June 30, we did break a resistance trendline that started back since April 1 2016. And then we reached on July 5 the highest price ever on that ETF - 55.55 but on a strong volume technical set up...
(See first chart below - Ellipses)

Taking a look at a bigger picture (weekly chart) gives us a better view of that strong break out move in March 2016 for the XLP ETF. (See second chart below - Red Trendline - Ellipse). All that with a strong Volume in February and March 2016 which it make a stronger technical break out case. (See second chart below - Bottom Ellipse).

The Consumer Staples Sector ETF (XLP) started to outperform compare to the Mighty SP500 (SPY ETF) since April 22 2016 and did retest the 200 DMA (Day Moving Average) on that ratio and rebounded strongly.
(See third chart below - Red Line). As the XLP ETF is making new high price wise, it did not in that last phase yet reach new high on a relative basis - the highest relative level was set on February 11 2016. (See third chart below)

But the most interesting part is that each time we had on a Relative Basis (ratio of XLP over SP500 Index - SPY ETF) a strong outperformance of the Consumer Staples (based on a 10 Months Moving Average), then it was a Major Technical Sign that the Mighty SP500 was in a topping process as shown by the fourth chart below.
That is my Canary in the Coal Mine. (See fourth chart below - Red lines - Top Panel Ratio - Bottom Panel SP500 Index).

The Consumer Staples Sector - XLP: New High Ever but.. $SPY, $XLP #Trading #xlp #SP500

RATIO
Consumer Staples Sector ETF XLP
over SP500 Index (SPY ETF)
Daily Candles

Consumer Staples Sector ETF XLP
Daily Candles
20 DMA ( Day Moving Average - Yellow Line )
50 DMA ( Day Moving Average - Red Line )
200 DMA ( Day Moving Average - Green Line )

Financialiceberg.Com

Consumer Staples Sector ETF XLP
Weekly Candles

RATIO
Consumer Staples Sector ETF XLP
over SP500 Index (SPY ETF)
Monthly Candles - Top Panel
10 MMA ( Month Moving Average - Red Line )

SP500 Index - Bar Chart - Bottom Panel

Financialiceberg.Com