XLP - corrective wave 4 down does not look completed

The Consumer Staples Select Sector SPDRFund tracks Consumer Staples Select Sector Index. The top holdings are Walmart, Coca-Cola, Procter and Gamble, Pepsico, Costco and Walgreens.

XLP looks like following a really nice and strong impulsive structure. I really like a textbook internal A-B-C structure of the wave 3 up that topped in February 2018.

I would point your attention to the very deep wave 2 down. It retraced 85.4% of the preceding rally of the wave 1. That implies that this current corrective wave 4 down may be shallow.

At this point I see a very good confluence of projection and retracement fibs in the 43.50 – 42.60 area. What we want is a nice five wave structure of the final wave C of 4 bottoming into the green box. At this point the drop looks very incomplete.

XLP - Weekly chart updated on 26 December 2018