As discussed previously, I’m hawking the XLP/NYA ratio. Noticed, yesterday, that even w/ the market flat/slightly down the ratio was trending lower. Sure looks like it wants to break support and go down to the pattern completion level at the .786. That’s bullish …
However, take note of the time cycles … it’s forecasting a ‘low’ in the ratio now – August.
To show the importance of this ratio, I put the NYSE Index (NYA) on top of the XLP/NYA ‘static time’ cycles and you can see that – while not perfect (remember this is a monthly chart and we could have some slippage in the overlay) it’s not a stretch to say that when the ratio has bottomed, the market has topped or topped soon thereafter w/ a month or so.
This market ‘could’ explode higher when we lose this support … all I know is we have 18 years of some pretty accurate ‘static cycles’ shown.
I’ll stay the course … need a WEEKLY close below the “15 year support zone” before initiating a long position.
I’ve been having a lot of fun over at https://www.stockmarkettv.com/ – check out some of the most recent posts: https://www.stockmarkettv.com/james-bartelloni
PS – no reason for the wave picture, I just felt like it would be a cool snap to put as a featured image.
