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SP500 Consumer Discretionary (XLY): Outperformance vs SP500 ?
August 19 ( From Stockcharts, TradingView )

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The Situation

The Consumer Discretionary Sector includes industries such as automobiles
and components, consumer durables, apparel, hotels, restaurants, leisure,
media, and retailing.

It remains as the name says it, discretionary spending for the consumer.
When we observe that sector start to underperform at the beginning of the year,
we can ask ourselves is the whole market can keep up without taking into account
the US Consumer which makes 70% of the whole economy.

The Consumer Discretionary Sector ETF ( XLY ) is within an uptrend
channel that started on August 12 with 78.99 as support and 80.67
as resistance. Closing price on August 18 was 79.18.
( See first chart below ).

On a bigger picture, the XLY is back above a Riding Wedge Pattern that started on March 26 2015 as shown by the thick blue and red lines on the first chart below. It is also back above the 20 and 50 DMA...

The Consumer Discretionary Sector ETF ( XLY ) started to outperform compare to the Mighty SP500 since August 12 2015. ( See second chart below )...

But what it is interesting to observe is that we reached on August 4 2015 on the the Consumer Discretionary Sector on a Relative Basis ( Ratio of XLY compare to the Mighty SP500 ) the highest level ever and that this sector is one of the strongest performer since mid-May 2015.
( Second Chart Below - Ellipses ).

SP500 Consumer Discretionary (XLY): Outperformance vs SP500 ? $SPY, $XLY #xly #investing #sp500

SP500 Consumer Discretionary ETF XLY
Daily Candles
20 DMA ( Yellow Line )
50 DMA ( Red Line )

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RATIO
Consumer Discretionary Sector ETF XLY
over SP500 Index ( Blue Line )
7 DMA ( Amber Line )