Consumer Group Broadening Out?
When the consumer sector is spoken of AMZN and TSLA dominate the conversation. Both of those names we are well aware of makeup more than 40% of the XLY, with Amazon up by 51% and Tesla by more than a double YTD. Each was off 2% to start the week. Below is the chart of the XRT which has been lagging up “only” 8% in 2023 compared to a 31% advance for the XLY. Monday was some slight division with the XRT higher by almost 2% and the XLY basically UNCH. Technically the XRT could be ready to muster a move upward after clearing a wall of resistance near 64. It has broken above a double bottom with handle base and its 200-day SMA. To me, this is a bullish development as the “equal weight” XRT is starting to show some strength and could be a sign that it will not be up to only AMZN and TSLA leading the space. In fact, they may start to be doing some of the heavy lifting as AMZN has recorded 3 doji candles in the last 8 sessions. TSLA is now on a 3-session-losing streak and trading into the 6/21 bearish engulfing that fell more than 5% in the largest daily volume in 5 months.