Retail Rouse:

Some of the heavyweights in the consumer discretionary space are waking up, and it probably could not have come at a better time. Looking at the ratio chart of the XLY compared to the S&P 500, the consumer ETF has lagged. Sure some to the top ten components in the fund were faltering, but 2020 has turned over a new leaf. MCD is on a 6 week winning streak, and this week is higher more than 3% and bursting back above its 200 day SMA. SBUX is ready for a challenge at the very round 90 number, and if it can climb back above will likely head back to par sometime in Q1. AMZN is nicely building the right side of a cup base, with a potential pivot near the very round 2000 figure. BKNG is flirting with a double bottom with handle trigger of 2082.77, and of course other top 10 holdings in the XLY, like NKE TGT and LOW have been behaving nice all along. If the mega caps we mentioned earlier continue to move northward, after nascent rallies, 2020 could get off to an even more potent start.

This article requires a Chartsmarter membership. Please click here to join.