Chart of the Day - Monday, January 5, 2026

🏆 Today's Chart of the Day was shared by Matt Cerminaro (@mattcerminaro).
 

• The equal-weight Consumer Discretionary vs. Staples ratio ($RSPD/$RSPS) pushed to fresh all-time highs today, logging its strongest session in over a month.
   
• Often referred to as “the best financial analyst on Wall Street,” this breakout signals the market is favoring growth and cyclicals over defensives, reinforcing a classic risk-on environment for stocks.
   
• The cap-weighted version ($XLY/$XLP) hasn’t broken out yet, but with a multi-year cup and handle pattern nearing completion and price less than 3% from new highs, confirmation may be close.
   

The Takeaway: Record highs in the equal-weight consumer ratio suggest investors are embracing risk, with the advance supported by expanding breadth rather than narrow leadership.