Haven’t looked at the XLP diamond in a little while, so let’s take a fresh look. The counter-trend rally has pushed prices well into the diamond, but we’re starting to get repulsion away from the $55 level.
The potential reversal power of this pattern remains intact. We need to “escape” the confines of the diamond and, ultimately, we need to take out late 2018’s lows. This is a superbly clean diamond pattern, but we need to remain below this month’s highs in order for it to remain viable.