Lost In The Shadow:

The top-heavy XLY is bloated with the 2 largest holdings in AMZN and TSLA. With that composition, it is the biggest reason why the ETF is right near the cellar among the 11 major S&P sectors. Give credit to those giants Thursday with TSLA recouping its 200 day SMA and AMZN above its 50 day for the first time since last December. Below is the chart of HD, the third-largest weighting in the fund at nearly 9%, and it has been acting poorly like the aforementioned duo now 20% off most recent 52 week highs (compare that to chief rival LOW which trades “just” 11% off its annual peak). Smaller peers in the home improvement retail space include FND which is fighting at the moment with the very round par number and declining 50 day SMA resistance. Much praise should be given to BECN which is right at all-time highs after breaking above a bullish ascending triangle that aligned with the round 60 number and it is on an 8 session winning streak. Getting back to HD it is on a collision course with an upside gap-fill into the latest earnings reaction, which was its 9th drop in the last 10 reports.

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