Battery Charged:

In our last Consumer Discretionary Note on 3/3, we looked at the chart below of TSLA just how it was annotated here. The note’s title was Battery Running Low. Perhaps with the pit stop and rest at the rising 50-day SMA it can indeed make another challenge toward the very round 200 number. That would be a big help for the XLY as this is the second largest holding in the fund. AMZN is trying to maintain ground above the very round 90 number, but the follow-through today after Monday’s bullish piercing line candle was tepid at best. The XLY itself did record a bullish counterattack candle Monday, and in my opinion, this must remain above 135 or this will be a very long next quarter for the consumer space overall. Concerning is the action comparing the XRT to the XLY. The more “equal weighted” XRT is up 2% YTD compared to the XLY up 8%, and over the last one month period is down 13% while the XLY is off 8%. Bulls want to see more “participation”.

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