Too Far Too Fast?

The XLY has really come to life as the ETF has advanced in 11 of the last 13 weeks. Of course, this is mostly due to the huge moves from top holdings in AMZN and TSLA. These names are still a good distance from their most recent 52-week highs, but their YTD returns are very robust, especially with TSLA now up more than double in 2023. It is now on an 11-session winning streak but Friday registered a spinning top candle which could indicate fatigue. The chart below of AMZN suggests the same may be just what the doctor ordered after a bearish engulfing candle on 6/7 coming in very strong volume. That at the very least should have one thinking of shaving off some in a core position. Other top 5 holdings include HD which Friday completed a bearish evening star pattern as it was unable to stay afloat above the very round 300 number. MCD however looks good after a bullish engulfing candle Thursday as it approaches its 50-day SMA. A double bottom trigger of 290.90 is now setting up as fellow casual diner peers in CMG and WING look heavy.

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