Is The Consumer Staples Breakout A Warning?

The Consumer Staples Select Sector SPDR Fund XLP has broken the resistance around the $71.50 level and that may be a bad sign for the markets.

The consumer staples sector consists of businesses that are considered necessary or essential. They sell products that people will still buy even if the economy slows down. They include food companies and pharmaceuticals.

Sometimes, this sector performs well when bull markets are nearing an end. Money flows out of stocks that are considered risky, and into stocks that are considered more conservative.

This aggressive buying of the consumer staple stocks could be a classic flight to safety. If it is, it's a bad sign for the broader markets.