No “DASH” For Trash:
Looking over the components in the XLY, some have really struggled. The third largest holding behind the juggernauts of TSLA and AMZN, Home Depot over the last one month period has recorded back to back advances once on 5/29-30, and is in “bear market” mode 20% off its most recent 52 week highs. Since 3/7 it has swam below the 200 day SMA and we know nothing good happens beneath that secular line. ORLY, another top 10 holding has formed a bearish descending triangle not long after a 15:1 split, and it is not uncommon for stocks to struggle after undergoing one. As the selection committee for the XLY, one of the best moves they could have made was adding the daily chart below of DASH. A leader in every sense of the word, it is up 31% YTD and up nearly a double over the last one year period. On its MONTHLY chart in June it is peaking its head above a 215.35 cup with handle pivot, but must CLOSE above their on Monday June 30th to be considered legitimate. Notice how it seemed allergic to the 220 area as it was above the number for 3 months between September and November 2021, but all CLOSED well below it with finishes of 205.98, 194.80, and 178.77. How it ends June could be very telling.