Consumer Discretionary SPDR ETF (XLY) broke out to new high Thursday, up 0.26 percent to close at 87.94. For starters, XLY focuses on the consumer discretionary segment of the U.S. market. Top holdings are Amazon (AMZN), Home Depot (HD) and Comcast (CMCSA). The ETF is up about 18% from its 52-week low of 74.18. And there are more gains in store for this ETF, according to our “U.S. Market Trading Map”. Below is an update look at a trade in XLY.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.2 – Consumer Discretionary SPDR ETF (daily)
As indicated in the above chart, our “U.S. Market Trading Map” was looking at XLY from a Buy side back in March 22, 2017. Thursday’s upside follow-through confirmed Wednesday’s bullish breakout above the March high. With an exception of a brief pullback in early February, Money Flow measure held firmly above the zero line since the ETF reached an interim low in November 2016, indicating there was little selling interest. The potential here…Click here to read more.
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