I was messing around with my charts and noticed that SPY and XLY (Consumer Discretionary) are diverging. Looking back in time - with the exception of one littler divergence a couple years ago - I can't find anywhere else this has happened. Is this maybe a sign that the consumer is getting overly confident? When fear is turned off, things eventually get out of control.
The other thing I noticed is that XLP (Consumer Staples) is gapping away from SPY and XLY to the upside. Guess when the last time XLP gapped away from SPY and XLY?? Yep, you guessed it! It was last year right before the market tanked. This would also (maybe) be a sign that consumers are getting overly confident.
The other thing I noticed is that XLP (Consumer Staples) is gapping away from SPY and XLY to the upside. Guess when the last time XLP gapped away from SPY and XLY?? Yep, you guessed it! It was last year right before the market tanked. This would also (maybe) be a sign that consumers are getting overly confident.