Always consider hidden risks
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 )​

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 )​