WMT / NYSE Index Ratio and the KEY support
CLIFF NOTES: patterns exist on the ratios/we use ratio analysis to look for sector rotation and when the RATIO’s inflect there are usually inflection points. We are at a key level in the WMT / SPX ratio. Also, I added the NYSE Index overlaid. Note EVERY HIGH AND LOW was at this ratio’s SUPPORT and RESISTANCE. We are at key support – TODAY – on this ratio. Also, the XLP/SPX ratio has a foldback occurring and I would “think” it will find support but sure doesn’t look like it …
BOTTOM LINE – this entire thing is in unchartered territory. Understand the scarce resource and monetize on that … stay away from these markets.