We're still in the midst of earnings season so volatility could spike as we approach monthly options expiration .....and the news of surprisingly poor housing starts put a damper on the market's recent burn rate.
We're seeing some selective pullbacks but, sticking with our previous premise, XLF and XLK are really the ETFs to keep an eye on.
The fact that the XLU has now become the top momentum X sector ETF is interesting and the P6 is clearly in a bull mode, BUT.....the RSQ is still downslope so we need to temper our enthusiasm a bit pending confirmation that this is a real long term opportunity.
The model is in a vested mode based on the top 2 sort, it's just prudent to keep a close eye on the momentum dynamics when the #1 slot chart looks like XLU.
XLY in the #2 slot (previously in #1) is exhibiting a little pullback, but for now the RSQ is upslope and the P6 is bullish.
