Money has been flowing into the Consumer Staples Select Sector SPDR Fund (NYSE:XLP). And that may be a bad sign for the market.
It could be a classic "flight to safety." This happens when investors sell stocks perceived to be risky and use the money to buy stocks that are considered safe.
Consumer staples companies are considered safe because they sell products people need and will buy regardless of the state of the economy. They include things such as food and medicine.
Flights to safety typically occur when the broader markets are getting close to a top. The aggressive buying of XLP may be a bearish dynamic for the market.
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