Discretionary Charge:
Over the last one month period consumer discretionary is the second-best major S&P sector. It is a good sign and even better is the reemergence of technology as the strongest behaved of the 11 tracked groups during that timeframe (Monday however, did rear the ugly head of the defensive spaces leading with real estate and staples as 2 of top 3 sectors). But the chart below of the XRT is carving out a potential bullish ascending triangle, and we spoke to strength with this ETF, in our 3/26 Consumer Sector Review. GME is still by far the largest holding, and Monday is testing its rising 50 day SMA, and a bullish engulfing candle from 3/25. Other top holdings that look attractive are SIG, RCII, and KSS. AMZN is the big wild card in the consumer space as it dominates the XLY, making up 22% of the ETF. TSLA, which many are still unaware of its large presence in the fund at 15%, packs a powerful one-two bunch to the entire group. On AMZN this week will be interesting if it can CLOSE above the round 3400 number. Has been pesky resistance for the behemoth dating back to last summer.