Staples Break Down — Again 🧺

Today's number is... 0.126

This is the lowest reading ever for Consumer Staples vs. the S&P 500.

Here’s the chart:

Let's break down what the chart shows:

• The top panel plots the XLP/SPY ratio in black — Consumer Staples vs. the S&P 500.
  • Two moving averages overlay the ratio: the blue line is the 50-day, and the red line is the 200-day.
• The bottom panel shows the daily RSI, with green indicating a bullish momentum regime and red showing a bearish regime.

The Takeaway: This ratio just hit an all-time low — and the message is clear.

Consumer Staples have been lagging the broader market for over a decade, and every rally has failed to reverse the trend. 

The last decade has carved out a textbook sequence of rounded tops, failed supports, and fresh breakdowns. 

That’s not noise. That’s structure.

Even the 50-day and 200-day moving averages have acted as ceilings — not floors. 

And now the ratio has decisively broken lower again, reaching a new all-time low of 0.126.

Momentum agrees. 

The RSI isn’t just weak — it’s firmly in a bearish regime. 

There’s no bullish divergence, no reversal signal, no sign of hidden strength.

When defensive sectors like Staples make new relative lows, it tells you investors aren’t seeking shelter — they’re leaning into risk. 

If Staples are this weak, the crowd isn’t bracing for impact.

Investors are pressing their bets elsewhere — in growth, in cyclicals, in leadership.

If safety is hitting all-time lows, what does that say about the broader market’s tone?

It sure doesn’t sound bearish.

Let me know! 

Grant Hawkridge | Chief Aussie Operator, All Star Charts

You’re not paranoid. Some companies really are built to fail. Herb Greenberg just showed JC Parets the red flags.

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