Stock indices retreated from typical resistance at their 50 DMAs on lower volume in the first half of the week, only to bounce on Thursday and Friday. IBD calls a confirmed rally.
XLP
Consumer Staples Select Sector SPDR ETF
Since over half of a stock's performance is due to its sector, it is important to have a method to evaluate broad sector and industry trends. As readers of my previous posts may guess, I am quite partial to IBD's industry ranking feature which ranks 197 industry sub-groups according to six month price performance. This level of detail is hard to emulate easily at home, but even simpler systems can give you insight into the market and help you make better informed trades. One easy way to gauge broad sector trends is to track sector ETFs versus a broad market index.
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