FINANCIAL ICEBERG
Always consider hidden risks
TECHNICALS
SP500 Consumer Discretionary (XLY): Near Relative Break Out?
March 29 2016 ( From Stockcharts, TradingView )
If you would like to receive our free daily markets updates, please Sign-Up
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 4 2016 and already testing
the Fibonacci resistance zone of 0.764 (78.53 on XLY)
(See first chart below - Upward Channel - Ellipse).
The Consumer Discretionary Sector ETF (XLY) started to outperform compare to the
Mighty SP500 Index (SPY ETF) since February 10 2016 and near its resistance trendline also.
(See second chart below - Red Trednline - Ellipse)...
But the real interesting part is that the Consumer Discretionary Sector ETF (XLY) is near testing the resistance trendline on a relative basis when Bullish convictions are relatively strong, one of the highest reading of the past 3 years. It will be a tough Battle for Bulls as already the Bullish Sentiment Index is over the 70% threshold on the XLY ETF. (See third chart below - Thick Black Trendline)...
SP500 Consumer Discretionary (XLY): Near Relative Break Out? $SPY, $XLY
#xly #investing #sp500 #spy
SP500 Consumer Discretionary ETF XLY
Daily Candles
20 DMA ( Yellow Line )
50 DMA ( Red Line )
Financialiceberg.Com
Financialiceberg.Com
Daily RATIO
Consumer Discretionary Sector ETF XLY
over SP500 Index - SPY ETF ( Candles )
20 DMA ( Yellow Line )
Daily Chart
SP500 Consumer Discretionary Bullish % Index ( Dots )
7 DMA ( Blue Line )
Financialiceberg.Com
Chart Source: Stockcharts.com
