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 TECHNICALS
Consumer Discretionary ETF XLY: At Technical Crossroads?
September  13 2016 ( From Stockcharts, TradingView  )
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​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 under ​perform since 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) made a Breakout from a Major
​Resistance Trendline on July 8 2016
 (See first chart below - Red Trendline) but failed to stay above with the September 9 2016 correction. It did kiss the 200 DMA (Day Moving Average) and tested the Support Trendline and rebounded from there. (See first chart below - 200 DMA - Green Line - Blue Trendline - Ellipse)

​​​​​The Consumer Discretionary Sector ETF (XLY) started to ​under perform compare to the ​Mighty SP500 Index (SPY ETF) since November 2015.
(See second chart below - Top Red Trendline - Ellipse)...
​​

But the real interesting part is that the Consumer Discretionary Sector ETF (XLY) is back testing the Major Support Trendline on a relative basis that started back since November 2008. ​​
(See second chart below - Bottom Red Trendline - Ellipse)

​​What puzzle me tremendously though is that the XLY ETF on a relative basis compare to the Consumer Staples Sector (XLP ETF), we see on a Monthly CHart that Discretionary spending ETF is underperforming the XLP ETF. Few of us realize that we broke on January 2016 a Major Monthly Support Trendline on a relative basis (ratio of XLY over XLP) and now below the 24 month moving average on that. (See third chart below - Green Line)

The last time it did happen was on September 2007 and a few months later a Major Bear Market occured;
that is my canary in the coal mine...​ (See third chart below - Blue Trenline - Vertical Amber Line)
Consumer Discretionary ETF XLY: At Technical Crossroads? $SPY, $XLY #xly #investing #sp500 #spy  #stocks #consumers



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 )​

Montly RATIO
Consumer Discretionary ​ Sector ETF XLY
over Consumer Staples Sector - XLP ETF ( Candles )
3 MMA ( Yellow Line )​
​12 MMA ( Day Moving Average - Red Line )​​
24 MMA ( Day Moving Average - Green Line )​

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