CLICK ON CHART TO ENLARGE
Consumer Discretionary ETF (XLY) is up 100% more than the S&P 500 over the past two years and is up 80% more than SPY since the 2009 lows. So Goes the Consumer So goes the markets? This relative strength winner has helped pull the broad market higher, with this in mind investors might want to keep a very close eye on this ETF right now!
Are leading Consumer Stocks about to do an important turn around right now? XLY created a “Weekly Doji Star” pattern at all time highs last week at (2) above, as it was attempting a breakout, above a 10-year resistance line. For some reason major tops often peak with a Doji Star pattern at the high.
From a Power of the Pattern perspective, XLY could be pulling a key turnaround at important price levels….if it does, it would impact SPY!
If XLY finds these lines as support… its a very good sign for the markets!