Chart of the Day - Tuesday, October 15th, 2019
October 15, 2019
Today’s Chart of the Day was shared on Twitter by Aaron Jackson (@ATMcharts). It's a ratio chart of the Consumer Discretionary sector ($XLY) relative to the Consumer Staples sector over the past 12-months. When the ratio is rising, it means Consumer Discretionary stocks are outperforming Consumer Staples stocks and vice versa. Aaron points out that this ratio is currently testing its downtrend line. This ratio is an important risk-on/risk-off indicator for the broader market. It would be positive for the bull case if it breaks out here, and Consumer Discretionary begins outperforming Consumer Staples.