Consumer Rally Broadening?

The XLY continues its control over the more “equal weighted” XRT. But the latter is started to show some signs that it wants to join the party. Monday for example the XRT rose by 2.3% as the XLY gained a pedestrian .5%. The XRT is still 38% off most recent 52-week highs whereas the XLY is “just” 24% off its own annual peak. The relative strength in the XLY was on full display last week as it advanced with an advance of 5.2%, while the XRT scored a WEEKLY loss of .2%, although it CLOSED at the top of its WEEKLY range. Looking at the top 3 holdings in the XRT which make up about 4% of the ETF (TSLA and AMZN amount to more than 40% of the XLY) CHWY doubled off its late May lows to a rejection at the downward sloping 200-day SMA. GO looks buyable as it comes into its rising 50-day SMA for the initial time following a break above a double bottom pivot of 34.80 on 5/11. OLLI bounced off its rising 50-day SMA Monday as it attempts to comfort itself from the current 3-week losing streak that has dropped by a combined 18%. Its go time for the XRT to follow through here. It does not have to catch up to the XLY, but its inclusion would be very welcomed.

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