Always consider hidden risks
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 )​​

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