Not All Created “Equal”:
In the consumer discretionary space, this is certainly true. The overall group has issues hanging with the AMZN and TSLA. That huge weighting for the duo in the XLY can be a live by the sword, die by it depending on which way the wind is blowing. Of course, at the moment there is a strong tailwind for the two, as TSLA has now CLOSED at the top of the WEEKLY range the last 5 weeks. This week got off to a good start as well up better than 5%, as the XLY was the best-performing major S&P sector Tuesday (only one of 11 to advance). The auto group was a strong actor as fellow electric car name RIVN is just below a 16 neckline in a bullish inverse head and shoulders pattern and a breakout would carry a measured move to the very round 20 number. An anagram peer of TSLA in STLA also looks attractive with a WEEKLY bull flag in place for those looking for European exposure and luxury as Maserati and Alfa Romeo under the umbrella. Looking at the chart below of XRT is it too obvious that another rejection with a bearish candle will stifle its potential ascent? As always, no need to guess. Let it prove it to you and buy strength above 64.