At the moment, Consumer Staples (NYSEARCA:XLP), Health Care (NYSEARCA:XLV), and Utilities (NYSEARCA:XLU) are at or above their recent new highs.
This reveals relative strength because all other sectors are clearly beneath their recent September price highs.
It suggests defensive or cautious money flow from the “Big Money” as they are electing to be more protective during both the retracement and the current rally.
We’ll take a more cautious approach as a result of the stronger “Defensive” sectors relative to the “Offensive” sectors and will monitor the S&P 500 rally closely.
This article is brought to you courtesy of Corey Rosenbloom from Afraid to Trade.