Materials Sector Weekly Positive Correlation Breakdown With Xlb

Why this matters: When XLB weekly returns decouple negatively from SPY returns for 2 consecutive weeks, a rebound in XLB often follows. Short-term negative divergence from broad market is often overdone in materials.

Plain English: When XLB weekly returns decouple negatively from SPY returns for 2 consecutive weeks, a rebound in XLB often follows. Short-term negative divergence from broad market is often overdone in materials.

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Type
alternative
Family
Political & Insider Filings
Status
Backtest Weak
Frequency
weekly

What this signal is trying to do

When XLB weekly returns decouple negatively from SPY returns for 2 consecutive weeks, a rebound in XLB often follows. Short-term negative divergence from broad market is often overdone in materials.

Plain English description

When XLB weekly returns decouple negatively from SPY returns for 2 consecutive weeks, a rebound in XLB often follows. Short-term negative divergence from broad market is often overdone in materials.

What to do with it

When XLB weekly returns decouple negatively from SPY returns for 2 consecutive weeks, a rebound in XLB often follows. Short-term negative divergence from broad market is often overdone in materials.

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Data sources

Known risks

Data source instability, false positives, and regime shifts.