Yes, the announcement of AMZN’s purchase of WFM was unarguably the catalyst for the big drop on Friday as grocery stores & other companies competing in the arena, such as WMT, will most likely face competition from AMZN as they attempt to take market share.

In fact, many (but not all) big moves in the market a triggered by a fundamental catalyst (e.g.- news headline, earning report from a market leading company, etc…) while some are triggered solely by a technical event (i.e.- key support or resistance breakout in the market or a sector). Often, the two will coincide. For example, a news release will be the catalyst for a bullish or bearish breakout of a well-defined & fully mature technical pattern.

XLP is acting exactly as forecasted in this post from Friday so far with it bouncing right off that yellow uptrend line to after tagging it at the lows on Friday. While it’s hard to say how much more upside is left before the next leg down, it appears to me that XLP is likely to rally to around the 56.50-56.65 area before the next leg down with a more power sell signal coming on a solid break & close below that yellow TL.