Episode 7/11: US (SPX) Sectors Technical Analysis Series - 18th of July 2019
Brief Explanation of the chart:
XLY- Consumer Discretionary sector index has proven to be one of or if not the best performing sector since 2009. "Rubber-band" theory of recessions does support this bounce in performance based on the negative sentiment in 2009 during which the...
XLI has been forming a massive head and shoulders pattern over the last year. Price is now just below my 3% breakout level of the horizontal boundary at $83.38 with a measured price target of just over $100
In an Up Channel
Broke-out of Ascending Triangle and may be testing support for a 2nd buying oppurtunity
Also Seasonality of % Months XLY outperforms SPY over last 20 Years is 50% for Jan and 70% for February.
This technical analysis was conducted using the Swing•Genie Cycles swing trading indicator on a 2-day chart. It typically takes between 1 and 10 days from the time the Swing•Genie Cycles indicator prints a dot on the chart for the trend to demonstrably change. A green dot is a bullish signal, a red dot is a bearish signal. Swing trades using this system typically...
Coming to the end of a triangle pattern, this asset has been coiling up like a spring with tighter and tighter range bound movement. Taking into account that hoilday season is just around the corner, I like this asset going forward
A two-day green dot (trend change confirmation) has appeared on XLY signalling a strong buying opportunity. Trade with WANT (3x leveraged ETF).
This technical analysis was conducted using the Swing•Genie Cycles swing trading indicator on a 2-day chart. It typically takes between 1 and 10 days from the time the Swing•Genie Cycles indicator prints a dot on the...
Good: 2012 monthly upward channel in tact. Upward pressure building in weekly chart for breakout to higher RSI and upper part of channel if the trade truce happens, which is likely.
Neutral: If no break out above $80 resistance then range bound building pressure to break in direction of trade truce.
Bad: Is it too late for the global economy or can all the...
My two most favorite indicators (RSI+MACD; not too crazy) just broke their monthly trends.
I think consumption data should be followed more closely in the next quarter to provide us with reassurance that the consumer remains strong.
Watch unemployment to remain contained, sentiment remain broadly positive - Umich, NFIB smallbus, OECD CEO - and that Homebuilder...
Consumer Discretionary (XLY) vs Consumer Staples (XLP), compared to the SPX, looks to be presenting a topping or continued ranging pattern in the SPX. Trend shows that XLP will continue trading higher until mid-October possibly more of a risk-off market. Once the US Mid-term election takes place maybe the markets attitude becomes more decisive.