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SP500 Consumer Discretionary (XLY): Critical Support?
May 12 2016 ( 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 a 
​Rising Channel that
​started on March 24 2016.
​(See first chart below - Upward Channel - Ellipse).

The XLY ETF did reject violently price wise the test of the 
​Resistance Trendline that started back on November 25 2015​​; a failed breakout for now.
​​(See first chart below - Red Trendline - Ellipse)

​​​The Consumer Discretionary Sector ETF (XLY) started to ​under perform compare to the
​Mighty SP500 Index (SPY ETF) since May 3 2016. (See second chart below - Ellipse)...
​​
But the real interesting part is that the  Consumer Discretionary Sector ETF (XLY) is back testing the previous breakout trendline on a relative basis and the 200 DMA (Day Moving Average), another sign of a false breakout?  ​Next few trading sessions becomes critical for Bulls on the XLY ETF.
​(See second chart below - Red Trendline - Ellipse)

​​





SP500 Consumer Discretionary (XLY): Critical Support? $SPY, $XLY
#xly #investing #sp500 #spy











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

50 DMA ( Red Line )​​
​200 DMA ( Day Moving Average - Green Line )​



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Daily RATIO

Consumer Discretionary ​ Sector ETF XLY
over SP500 Index - SPY ETF ( Candles )

20 DMA ( Yellow Line )​

​50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​