Cheerful Consumer:

Over the last month’s period, the XLY is hanging tough up 8%, with the more defensive-oriented sectors like real estate, financials, industrials, and materials. Last week the fund rose 3.5%, which was less than the XRT advance of 5.6%, but that speaks to me of the breadth improvement. Of course, the XLY is a top-heavy fund that is heavily influenced by AMZN and TSLA, with the former breaking out firmly above a bull flag on Monday and is now at a fresh 52-week high. So much for all the headlines last month of Bezos selling large amounts of stock. TSLA reversed Monday and above the 250 level looks good to me as it edges above a symmetrical triangle and breaks a series of lower highs. The third largest weighting is HD and since the big run in late October, it has not lost ground in consecutive sessions. It also happens to be the 4th largest holding in the Dow which gives the benchmark some wing behind its wings. HD continues to be the best-in-breed home improvement play, off just 1% from most recent 52-week highs while chief rival LOW is 6% off its annual peak.

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