XLP- Consumer Non Cyclicals

The Theory is that this sector should outperform(lose less than the rest of the market)

We are going to look at Sector 1 from the buisness cycle chart. Consumer Non

The Macro Picture-XLP.

The Peak is in December. Nice ABC correction.

• Pro- There is a Clear 5 wave down-leg made days ago.
• Though under stress, it's not making new lows, and solid MACD divergence.
• Con- Common Thesis is for a VIX washout up to 30, We are within 2 trading days of that. I would think it would make a new low, in the washout.
• CON-The Above Wave C.... I'd expect, within it a clearer ABC pattern... Which suggests Maybe 5 more days of Neutral to Bullish movement... Then another leg down

( I tell you what, Put in an order for 25 for the washout, and walk away with an easy 5% win, once we bounce, or "market buy" this sucker on the washout.)

This is the Wave C downleg for the past month.

That is a Very clean EW, High Volume Low.

It would make me feel much better if there was a Clearer ABC Pattern to it... Which makes me suspect this is an A leg, and that we could have a B leg for a few days/weeks. With 10700 as a a proposed Target for this downleg... I just don't think we will get another Strong C leg downtrend after this.... Always hard to go against the Elliot Waves. A nice 2 week move to the upside though, and I could buy a heavy downleg from say the 27.20 level