Rotate Back To Consumer Staples ETF
Dragonfly Capital | Aug 10, 2016 07:48AM ET
Simone Biles was busy rotating around the Rio Gymnastics events Tuesday, leading the team USA women to an all-around team gold medal by a record margin of victory. The stock market has been going through its own rotation. Last week the Federal Open Market Committee released their policy statement and the Consumer Staples Sector fell.
The chart below shows the pullback in the Consumer Staples Select Sector SPDR (NYSE:XLP) as well as how far it has moved up since the August low. There has been rising trend support in place over that one year run higher. And the most recent pullback is at that trend line. You can also see a break above resistance at the end of June, following a 3 month consolidation. The recent pullback has tested that breakout level and held as well.
Get The News You Want
Get The News You Want
Get The News You Want
Just because the price is at both support levels does not mean that it will reverse. But when you look at the momentum turning positive it is worth watching. The RSI is moving up to the mid line for a break higher and the MACD is leveling after pulling back. A move over 55 would confirm a reversal higher.
Get The News You Want
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Get The News You Want
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.