One of the noteworthy developments in recent days has been the move in consumer staples. The group attracted strong buying support in recent days as an escalation in trade tensions between the U.S. and China forced traders to defensive names. The Consumer Staples Select Sector SPDR ETF (XLP) jumped about 9 percent since reached an interim low in early May 2018. Now the question is whether the rally has more legs? Below is an update look at a trade in XLP.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – Consumer Staples Select Sector SPDR ETF (weekly)
Our “U.S. Market Trading Map” painted XLP bars in red (sell) – see area ‘A’ in the chart. The first dominant feature on the chart is the rising trend line starting in early 2009. The second dominant feature of the chart is the downtrend starting in early 2018, which represents the digestion period. The February downswing…Click here to read more.
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