Amazon Effect:
On Tuesday the only major S&P sector that rose on the day was the XLY which rose by .5% (Wednesday fell 1%). That was in large part due to AMZN which rose by 4.5%, or just more than one hundred handles. If one was to look at the more equal weighted XRT, that fell 2% Tuesday and another 1.2% Wednesday so there was some disparity among the large and small caps. On a YTD basis, the XLY and XRT are both down more than 20%, and the XLY is still the worst major S&P sector out of 11. The ratio chart below it shows an advantage to the XLY here as it has taken out a series of lower highs and lower lows. AMZN will have a lot of say in that and Wednesday the stock was up another 3% early on but CLOSED up just more than 1%, and looks like it is on a collision course with its downward sloping 50-day SMA and just above a gap fill from the 4/28 session. TSLA jumped 14.4% last week, its best WEEKLY gain of 2022 just missing a bullish engulfing candle. Keep in mind the XLY has gained just 5 weeks in 2022 so far and last week’s jump of 9.5% is similar to the 9.1% advance the week ending 3/18 which went nowhere fast.