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The Discretionary/Staples ratio has been in a solid uptrend over the past 8-years, inside of rising channel (A), which sends a bullish message to the stock market. It has been especially strong in the past 2-years.

These rallies now have the XLY/XLP ratio at the top of rising channel (A), where a couple of weekly reversal patterns took place at (2). The price action over the past few weeks has NOT changed the overall trend.

Joe Friday Just The Fact Ma’am– If steep rising support breaks at (2), it would send a cautionary signal to stocks as momentum is at the highest levels since 1999!