Automatic wave scan: as of 21 Oct 2026, the automatic daily count for XLP is Wave 5 up with a bullish bias. The count stays valid while price holds 80.10.
Current XLP wave count
Automatic wave scan Updated daily from the latest daily close (21 Oct 2026). Computer generated from swing highs and lows, not reviewed by an analyst.
Automatic scan: price is in wave 5, the final leg of a five wave advance that began at 82.81 on 23 Jul 2026. Next levels to watch are 88.92 and 89.96. The count fails on a daily close below 80.10.
Key levels
| Type | Levels |
|---|---|
| Resistance | 87.47 · 88.78 |
| Support | 80.10 · 83.86 |
| Invalidation | 80.10 |
What is XLP?
XLP launched in December 1998. Its holdings include large makers of food, beverages, household products and big retailers.
People keep buying these products even in recessions, so staples stocks tend to fall less than the market in downturns, though they often lag in strong rallies.
What moves the XLP price?
- Defensive demand: Investors move to staples when growth slows.
- Input costs: Commodity and wage costs affect margins.
- Interest rates: High dividend stocks compete with bond yields.
- Pricing power: The ability to raise prices supports profits.
- Consumer trends: Shifts to store brands can hurt margins.
How XLP moves in Elliott Wave terms
XLP's waves are usually slower and smaller than the S&P 500's. Corrections are often shallow, and sideways triangles are common. When XLP outperforms the market, it can signal a defensive mood.
Compare XLP with XLY to judge risk appetite.
Tips for counting XLP waves
Watch the XLY to XLP ratio. When it falls, investors are getting defensive.
XLP key facts
XLP Elliott Wave FAQ
What are consumer staples?
Everyday products people buy regardless of the economy, such as food, drinks and household goods.
Why is XLP called defensive?
Demand for staples stays fairly steady in recessions, so these stocks often fall less than the market.
What is the XLY to XLP ratio?
It compares discretionary and staples stocks. A rising ratio suggests risk appetite, and a falling ratio suggests caution.
Sources and further reading
- XLP fund page and holdings (Select Sector SPDR Trust)
- Exchange-traded funds (ETFs) investor bulletin (U.S. SEC Investor.gov)
Educational content only. Nothing on this page is financial advice or a recommendation to buy or sell. Trading involves risk and you can lose money. Elliott Wave counts are probabilities, not certainties. Read our full disclaimer and affiliate disclosure.
