Always consider hidden risks
SP500 Consumer Discretionary (XLY): Near Relative Break Out?
March  29 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 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 )​​

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 )

Chart Source: