Over the past several months, one thing has been clear: risk-off in the financial markets.
Value stocks have outperformed growth stocks and tech stocks have been battered. As well, Consumer Discretionary (XLY) has grossly underperformed Consumer Staples (XLP).
And today we take a renewed look at this ratio.
Below is a long-term “monthly” chart of the $XLY to $XLP performance ratio. As you can see, the recent drop over several months has been steep. And it’s currently threatening to breakdown through 13-year rising trend price support at (1).
More specifically, the current monthly bar for November has seen this ratio fall well the trend line which means the close for this month will be extra important.
Will we get a brand new risk off message from this key consumer ratio? Stay tuned!
Consumer Discretionary (XLY) /Staples (XLP) “monthly” Chart
Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to firstname.lastname@example.org for details to get set up.
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.