Under the radar: Over the past month consumer staples ($XLP ) are +11.7% while tech ($XLK ) is −19.4% — a 31-point gap, the widest since 1999.
→ Prior record: April 2000 at 30.8 points
→ 4 of the top 5 gaps came from 2000–2001, the years the bubble deflated
→ Staples are near a 3-month high; tech is at a 3-month low
I think money isn't leaving the market — it's hunting for shelter. Worst case: if defensives flip red too, there's nowhere left to hide and the real selling starts then; watching that divergence closely.
Watching: $XLP $XLK $SPY
#Stocks #Economy #Selloff
→ Prior record: April 2000 at 30.8 points
→ 4 of the top 5 gaps came from 2000–2001, the years the bubble deflated
→ Staples are near a 3-month high; tech is at a 3-month low
I think money isn't leaving the market — it's hunting for shelter. Worst case: if defensives flip red too, there's nowhere left to hide and the real selling starts then; watching that divergence closely.
Watching: $XLP $XLK $SPY
#Stocks #Economy #Selloff
