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Monday, August 21, 2017 1:49:38 PM
Is XLP (Consumer Staples SPDR ETF) Sending Investors a Warning?
By MPTrader | August 21, 2017
One more SPY sector chart set-up to be aware of is XLP (Consumer Staples), which we could make the case is developing a 6 month distribution top formation. For a sector that is supposed to represent defensive, cash n' carry, "recession-proof" businesses, a topping formation reflects a risk-on, possibly excessively optimistic view of business conditions and the economy that is sucking capital out of XLP.
That said, more to the point, our eyes should be focused on the more recent July-Aug. rally peaks at 55.87 and 55.94, which must be hurdled and sustained to neutralize the threat of the developing larger top formation. As long as the 55.87/94 resistance zone remains intact, XLP will be vulnerable to cracking beneath key near term support at 54.94/98, which will trigger additional weakness that points to a test of the up-sloping 200 DMA, now at 54.10.
https://www.mptrader.com/middaymarkets/
• DiscoverGold
Click on "In reply to", for Authors past commentaries
By MPTrader | August 21, 2017
One more SPY sector chart set-up to be aware of is XLP (Consumer Staples), which we could make the case is developing a 6 month distribution top formation. For a sector that is supposed to represent defensive, cash n' carry, "recession-proof" businesses, a topping formation reflects a risk-on, possibly excessively optimistic view of business conditions and the economy that is sucking capital out of XLP.
That said, more to the point, our eyes should be focused on the more recent July-Aug. rally peaks at 55.87 and 55.94, which must be hurdled and sustained to neutralize the threat of the developing larger top formation. As long as the 55.87/94 resistance zone remains intact, XLP will be vulnerable to cracking beneath key near term support at 54.94/98, which will trigger additional weakness that points to a test of the up-sloping 200 DMA, now at 54.10.
https://www.mptrader.com/middaymarkets/
• DiscoverGold
Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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