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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).



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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
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
Financialiceberg.Com