The XLU/XLY Ratio (upper chart) is reaching a measured move target.
Bottom chart is the SPX.
Correlation between these charts are straight forward negative. You see it in the blue area indicator at the bottonm.
Means when one goes up the other one goes down.
The XLU/XLY ratio is in a downtrend and is going to hit a potential tunring point area. Are we coming closer to a turning point in the market?
not a must... but a turn in the XLU/XLY ratio and an uptrend I would see as a confirmation for a downtrend if we see it.
Bottom chart is the SPX.
Correlation between these charts are straight forward negative. You see it in the blue area indicator at the bottonm.
Means when one goes up the other one goes down.
The XLU/XLY ratio is in a downtrend and is going to hit a potential tunring point area. Are we coming closer to a turning point in the market?
not a must... but a turn in the XLU/XLY ratio and an uptrend I would see as a confirmation for a downtrend if we see it.
Murat Oers (CFTe)