We’ve been following this one for a while, and it continues to look interesting. The ratio of the Consumer Discretionary Select SPDR (XLY) to the Consumer Staples Select SPDR (XLP) is a good gauge of risk appetite.
For several days it appeared to be rolling over severely — even as the broader market remained basically flat — though on Thursday and Friday the ratio bottomed. A return of the uptrend would obviously be positive for the bulls. All that being said, it’s going to be quiet trading this week and next in all likelihood.
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