Consumer Staples

There is some very interesting action occurring in the Consumer Staples Sector.  The XLPs have been in a steady well-defined uptrend since the later part of 2009.  After trending lower for the past four weeks, they are testing the uptrend line.  This may be a sign that after seven years the uptrend may be coming to an end.

Remember that there is nothing magical or mysterious about trendlines.  They are merely a graphical picture of who is in control...the forces of supply or time passes.  Prices are always doing one of three things - going up, going down, or staying the same.  This is what trendlines show.

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