Staples Courage:

The staples have been a mediocre space when compared to the other 10 major S&P sectors, but they warrant attention. We last wrote about them a month ago as the XLP was attempting to reclaim its rising 50-day SMA and it did go on to record the double bottom breakout, which then went on to form a handle as well on the base. Top holdings that are acting well include WMT, which just recorded its second straight well-received earnings reaction up 7% and clearing a 61.54 cup base pivot in the process (the WEEKLY chart shows as clean a bull flag breakout as one can see). COST is holding above a cup base pivot of 785.92 as it deals with round number theory at the 800 figure. PM shows no one is immune from round number theory as it looks to shake free from the par figure, although give it credit for negating an ugly bearish engulfing candle from 4/25 and is now dealing with a bearish evening star completed last Friday. ELF has hit a stumble, a name that registered a 15 of 16-month win streak between May 2022-August 2023. It REPORTS Wednesday after the close, overshadowed by NVDA, but perhaps a disappointment may offer a rare opportunity into its rising 50 WEEK SMA near 141. 

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