Time For A Breather:

Glancing at the chart of the dominant XLY top holding, which is now 25% of the fund, after a spirited run suggests a healthy pause may be in order. This week headed into Friday it is up 7% and that is on top of the prior week adding more than 4%. Since the 9% jump the week ending 3/6 the stock has advanced 6 of the last 9 weeks, and the 3 decliners fell 1% or less. TSLA is driving right into an upside gap fill from the 4/19 session and is still beneath both its 50 and 200-day SMAs. Other top 10 components include HD which has made up all the lost ground from Tuesday’s earnings reaction, and that is off a bad number so the good reaction could be considered a minor plus. NKE on Wednesday CLOSED at a low for 2023 and perhaps if it can consolidate here will start the right side of a double bottom base. SBUX on the other hand has been reluctant to recapture much of the losses from its earnings reaction on 5/3 and a move below 104 could be considered a bear flag breakdown carrying a measured move to 94.

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