Equal Weight Narrative:
Whatever subject in life people are discussing one can always paint a bias. Politics, sports, and yes of course markets. Take a peek at the equal-weight consumer discretionary ETF below, which trades in an illiquid fashion (we are using it strictly for illusion purposes) but it is showing some evidence of a possible double bottom. Bulls would say it is sniffing out good times ahead and bears would paint a picture of just continued domination by AMZN, the largest holding in the XLY. The fund is trading into a bullish island reversal from the end of Q2 at the round 40 number. The WEEKLY chart shows just how meaningful that area is, as we know PRICE has memory. The 40 area witnessed nice reversals on the WEEKLY the week ending 3/31 which jumped 6%, and a bullish hammer candle the first week of June too. This week is up almost 3%, bouncing off the upward sloping 200 WEEK SMA, and could complete a bullish morning star pattern if it CLOSES around here Friday afternoon.