Stalemate:
On a YTD basis, the consumer discretionary space via the XLY remains heavy, as it is the 10th best of 11 major S&P sectors down 17% sandwiched between the communication services and real estate groups. AMZN and TSLA obviously dominate that fund, with the former proving me wrong as I thought the move below the very round par number would have legs to the downside. TSLA sports a bear flag pattern with an entry a sell stop below 180 which would carry a move to fill in the gap from the 1/25 session. Below is the more “well-rounded” chart of the XRT, and both it and the XLY are slightly more than 20% off their annual peaks. The name of the game here is patience for those playing the ETF as a couple of bearish engulfing candles in such quick succession is problematic, although bulls would declare the bullish morning star completed on 4/10 is encouraging. There are better fish to fry in my opinion with individual names that we will discuss more in-depth later in this report.