One-Two Potent Combo:
Some of the big holdings in the XLY, which is very top-heavy, have been making their presence felt. Home Depot is just 1% off all-time highs, MCD the ETFs fourth-largest component is at all-time highs, and of course, there is NKE which has been slumping and is now off a quick 15% from highs made on 8/6. But the two that matter the most, and which make up more than one-third of the fund are AMZN and TSLA. AMZN in my opinion it is at a critical juncture here as it could be constructing the right side of a bearish head and shoulders pattern that began at the start of April. However, a break ABOVE that could produce a very solid move to the upside. Below is the chart of TSLA and this one is rapidly building the right side of a WEEKLY cup base formation. It is dealing with the very round 800 number, and the pivot in the cup is another 100 handles higher, which it can achieve pretty fast. I am not recommending any trades on the two, but just to demonstrate the power and influence they have on the XLY. Strength from both of them could turbocharge the space.