the ratio (XLP/NYA) is the ONLY thing I’m watching w/ regard to equities …

last XLP/NYA ratio post …above

I’ve been monitoring the ratio, daily, for a while as I really wanted the ratio to go down into the “major support” area as I could then feel probability was on my side to take a crack at shorting the market. yes, shorting the market …

if you’ve been reading my blog for a while and for those newer blog readers you will find out/know that the patterns on the XLP/NYA ratio have been exact and helpful in understanding the flow of funds in the big institutions. KEY.

so, I noticed the “key trend line” last time I blogged and noted it but, honestly, haven’t been paying that much attention to it .. just had the lower “major support” level on my hand but, the “key trend line” looks like it has tagged the ratio and provided some much needed support for this falling knife.

now what – well – we are kind of in no mans land … but, I’ll be watching closely and, keep the “major support” level a little below in the back of your head …

XLP/NYSE Index ratio – BUY

this ratio xlp/nya is a GREAT guidepost .. buy pattern complete. if it holds and starts back up expect selling to being again .. KEY LEVEL

for those who follow this blog – remember – it’s all about PATTERNS and I try (operative word) to remove any subjective analysis from the mix. PATTERNS work and sometimes they don’t …

additionally, you’ll see here – https://bartscharts.com/2020/03/23/xlp-nya-ratio/ that the XLP/NYSE Index ratio has been a good guidepost for BIG inflections UP and DOWN for the equity market.

today, at the low on the ratio, we completed a BUY PATTERN. we do have a little lower for other targets to get hit but, essentially, we have a BUY PATTERN complete and, if it works (operative saying), THEN the selling should resume …

if it fails, which it certainly could, then this is a very bullish development and the rally will continue .. patterns like this, when they fail, are usually face rippers so time to hold on and see which way the market Gods would like to go …