$XLC

XLC is an underperformer with a negative outlook; its relative strength is weak and trending lower, with no current sign of reversal.

Bearish
“The Sector Rotation Just Changed. Here’s What’s Leading”
StockCharts TVPublished Aug 24 · 2 passages

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Now, the other one is communication services. That was a negative outlook already, red box, and it remains like that. It's still it's picking up, but it's doing that much further to the left than the material sector.

So, this XLCC sector as the lowest RS ratio reading with a little bit of a pickup. Also, look at the difference in tail length. Tail length of XLB is a lot longer, which means that there is more power behind it.

XLCC has a little shorter tail, which means a lot less power. And especially also the ranking on the RS ratio scale. So, XLCC remains a clear underperformer in this framework.

We look at communication services. As I said, it remains on a negative outlook, and you can see why that relative trend is absolutely moving lower, a little slow down here, and that's causing that RS momentum line to move higher.

But look at how deep that RS ratio has sunken, and there is no reason, at least not yet, I think, in this price chart to see anything else happening to that relative strength line. So, that remains an underperformer.

What this channel has said about $XLC

StockCharts TV has 2 calls on this stock; only the adjacent ones are shown.

2026-09-17Bullish
Now, then we have XLC. Here you see a difference. It's accelerating, starting better. And despite the fact that it has a very low RS ratio reading, this sector is now improving because it's got the one, two, three, third, fourth strength in momentum. And that relatively high momentum reading makes it an interesting sector to keep an eye on. So moving that to mildly positive improving.
Quote at 20:30 ›
Direction flip
2026-08-24BearishThis one
Now, the other one is communication services. That was a negative outlook already, red box, and it remains like that. It's still it's picking up, but it's doing that much further to the left than the material sector. So, this XLCC sector as the lowest RS ratio reading with a little bit of a pickup. Also, look at the difference in tail length. Tail length of XLB is a lot longer, which means that there is more power behind it. XLCC has a little shorter tail, which means a lot less power. And especially also the ranking on the RS ratio scale. So, XLCC remains a clear underperformer in this framework.
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KOL Says