In Consumer Staples we see a classic pattern know as an “Ascending Triangle”. This is a bullish pattern and if you understand the dynamics it is easy to see why. It shows how as time progresses buyers become more aggressive…meaning they are willing to pay higher prices. The sellers are content to be patient and they stay at 51. And the sellers who were above 51…say at 52 or 53…see that when XLP gets to 51 it rolls over, so they decide to reduce their prices to 51 as well because they don’t want to miss making their sales. Now…if 51 gets broken to the upside…prices will rise rapidly because there is an air pocket…meaning that there is no meaningful sell interest and supply between 51 and 53. Buyers will need to pay a premium and they will make prices gap up if they buy it.