Home Is Where The Heart Is:

Tucked inside the very diverse consumer discretionary space are the homebuilders. Over the last week, strength has emanated from subsectors such as tires, recreational services, travel and tourism, and gambling to name a few. And that is not even mentioning big moves in the two behemoths last week in AMZN and TSLA which have been rising powerfully, albeit moving into 200-day SMA resistance here. I think overall the XLY could come in to fill the earnings gap near 157 from the 7/28 session which also would be the rough retest of a bullish ascending triangle breakout. Below is the chart of another important group within as they are interest rate sensitive, and with many thinking rates have peaked could be a good place to look for longs. The ITB has repeatedly met resistance at the 62 level since early May, and a break above there is a good possibility as the more times a line of resistance is touched the more likely it is to break through in my opinion. For the last 3 weeks, the fund has CLOSED in a very taut manner all within just .62 of each other and we know breaks above that type of digestion tend to be powerful. Wednesday morning could be the catalyst.

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