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Consumer Discretionary ETF XLY: At Critical Support?
June 13 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 Huge Rising Wedge that ​started
​on November 25 2015. 
(See first chart below - Rising Wedge).

The XLY ETF did reject violently price wise the test of the Resistance Trendline on May 1​0​​;
​a failed breakout it was. ​
​(See first chart below - Red Trendline - Ellipse)

On June 10, the XLY ETF did test the Major Support Trendline of that Rising Wedge. (See first chart below - Blue Trendline - Ellipse)

​​​​​The Consumer Discretionary Sector ETF (XLY) started to ​under perform compare to the ​Mighty SP500 Index (SPY ETF) since May 3 2016 after a false relative breakout. (See second chart below - Red Trendline - Ellipse)...
​​
But the real interesting part is that the Consumer Discretionary Sector ETF (XLY) is back testing the Previous Support Trendline on a relative basis that started back since May 15 2015. ​(See second chart below - Blue Trendline - Ellipse)

​​Next few trading sessions becomes critical for Bulls on the XLY ETF as we are testing at the same time the Support Trendline price wise and on a relative basis.


Consumer Discretionary ETF XLY: At 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 )​