Amazon Vulnerable?
Within the XLY there are two dominant forces in AMZN and TSLA. We know the latter has been lagging and AMZN is doing its best to keep the ETF afloat, but what if that pressure is weighing on the psyche of the stock? The daily chart below of the XLY shows it clinging on to its 50-day SMA, but the failure of the cup base breakout, lasting just 5 sessions, is notable. On a YTD basis, it is just one of only two major S&P sectors in the red down .4%, and TSLA has been one of the culprits (this is nothing new and notice here how the WEEKLY chart shows how soft it has been since hitting a wall at the very round 300 number last summer and it could be headed to par with all the big WEEKLY losses CLOSING near lows). The WEEKLY chart of AMZN shows back-to-back spinning top candles and the possibility of a bearish MACD crossover which occurred last September and witnessed a quick 20% haircut. Rounding out the top 4 components it should be no surprise there is bifurcation there, with HD bull flagging, and MCD clinging to its 200-day SMA.