Consumer Cheerful?

We have mentioned the differences between the more diversified XRT, to the more concentrated XLY. Looking at the PRICE action of the two, AMZN has really skewed the returns as the XLY sits just 16% off its most recent 52 week highs, while the XRT is 26% off its own yearly peak. Amazon has produced back to back sessions of greater than 100 handles, and today broke above a cup base pivot of 2186.05. It is on a hiring spree, and is benefitting from consumers making online purchases for delivery. Both of the ETFs still trade underneath their 50 and 200 day SMAs, and while the XLY has successfully moved past an upside gap fill from the 3/11 session, the XRT has not. It has lagged the XLY, and will need to muster some strength here, and if it can break above that it would be impressive. STMP and CHWY the second and third largest holdings will have to provide a lift, although Chewy did record a gravestone doji Tuesday.

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