Battery Charged:
The XLY is dominated by its top two holdings AMZN and TSLA. The former is quickly approaching a cup base pivot of 143.73, and the chart below is of the second largest holding in Tesla. Its complexion has been looking better over the last few weeks and it should continue to do so after Monday’s reclaim of its 50-day SMA and has now recaptured its 21-day EMA with 10 consecutive CLOSES above it. Monday the stock started the week on a very strong note up 10% and will be looking for a 4-week win streak, beginning with the week ending 8/25 that screamed higher by 10%. On its WEEKLY chart, if this can catapult above the very round 300 number into year-end, that would end the series of lower highs dating back to when it was rejected at the very round 400 figure in late 2021. For that to occur, its daily chart has to make those smaller steps and Monday was constructive breaking above the bull flag, although it formed below the 50-day SMA. This stock feels like it has its mojo back, and it is a good sign that peer RIVN is digesting its big WEEKLY gain of 16% the week of 9/1.