Consumer Staples ETF May Not Be A Safe-Haven (XLP)

With risk appetite apparently on the decline, investors may be thinking now is the time to invest in a sector like consumer staples. Low-beta consumer staples names often feature decent dividends and fair yields, making them an attractive option for investors who don't want to flee to cash when market volatility increases. Take a closer look at the Consumer Staples Select SPDR

and you'll see that a double top has formed and if the support at $26 doesn't hold, there is plenty of room to the downside. That means there are several options for investors interested in this ETF: Wait for the ETF to make a new high on strong volume or wait for a decline to avail yourself of a better price. A third option would be shorting the ETF or to consider put options. Either way, the chart is saying a long position would be risky at this point.