Size Matters:  

As the 2 largest names that dominate the XLY in AMZN and TSLA kind of wobble the XRT is doing the same thing. Looking at the XLY one can see how this has been a bit fragile since the 52-week highs with the bearish island reversal with the gap up on 3/21 and the gap down on 3/22. It has met consistent resistance at the downward-sloping 50-day SMA for more than a month now and the bull flag was never taken out (notice its weakness against the S&P 500 for at least the last 6 months as well). The chart below of the XRT, a more broader-based ETF trades a bit tighter than the XLY but does not exude a bunch of confidence. It was never able to break above the range between the round 70-80 numbers and now is right back to the middle of that area. On the WEEKLY chart, notice the bearish shooting star candle last week, in the largest volume since the week ending 1/29/21. The wild ride that the top-holding GME has undergone contributed heavily to the making of that WEEKLY dubious candle. Last Friday completed the bearish island reversal following the gap up on 5/13 at the very round 20 number. 

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