Size Matters: 

Or not? In the top-heavy XLY, the two largest holdings in AMZN and TSLA have been having some issues. The recent softness in AMZN on the MONTHLY chart looks like a blip and it is still in the vicinity of the cup base breakout pivot above 188 (the caveat would be the MONTHLY bearish RSI divergence dating back to late 2018). TSLA has its Robobtaxi event on Thursday so that should be a market mover and its MONTHLY chart could be explosive with a break above a symmetrical triangle which could also be interpreted as a bull flag. Interesting is the strength in the homebuilder periphery plays and this is happening in the face of rising interest rates. The chart of the ten-year yield shows some interesting developments as RSI has run quickly from the oversold 30 to overbought 70 figure (often signals that instrument has further to run higher in PRICE from current levels). Bears will say it has now filled in the upside gap from the 8/1 session and Tuesday recorded a doji candle. HD, the third largest component in the XLY is acting well POST breakout above a MONTHLY cup with handle pivot of 391.86. Notice how it has negated two bearish evening star patterns and a doji from August. The daily chart below of the XLY is now sporting a bull flag and any improvement from AMZN TSLA and HD could see this achieve a measured move to 218 by year-end.

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