Consumer Staples $XLP has found its way to the top of our sector list, with Utilities $XLU right behind. This type of action is standard when stock prices are falling, because these groups are the least volatile sectors.
As such, we would like to see these sectors stop outperforming for stock prices to start going higher again.
But as it looks right now, XLP just completed a massive breakout relative to the S&P 500. This is not good news.
If you're positioned for stock prices to go higher, in all likelihood, you need to see this ratio fail to hold this breakout and begin working lower again.
