Sector Focus – Comsumer Discretionary Select Spiders (XLY)

Consumer Discretionary Select Spiders (XLY) rebounded out of a 5-session downtrend and backtest to the 50-day moving average with Friday’s top reaching $112.01.

Lower resistance is at $112-$112.50 held with additional hurdles at $113-$113.50. The recent July all-time high tapped $113.57. Near-term is support at $111.50-$111. A close below the latter would signal a false breakout with risk back towards $110.50-$110.

RSI is back in an uptrend with resistance at 55-60. A close above the latter would signal renewed strength for a possible push towards 65-70 and mid-July highs. Near-term support is in the 50 area with a sharp close below this level being a bearish development.