XLP/NYA hit a nice buy pattern on Friday and based on the entire days action, there is another “minor” buy pattern appearing. if both of these hold, then the staples should continue to outperform which traditionally causes equity weakness.
if we lose the levels, then we have the .786 ratio a little lower … either way, the ratio should NOT take out the January 20 low, for now, as that was a pretty big target. sure looks like probability favors more upside for the ratio next week.
the last post on the XLP/NYA ration and the very important support which I submit is the “cause” of the recent weakness: https://bartscharts.com/2021/01/24/ratio-analysis-key-level-hit-on-the-xlp-nyse-index/
