Consumer Sectors Strong Despite Higher Oil Prices, Financials Hold the Line
Today consumer sectors held up very well despite the surge in oil prices.
- XLY is under a broken trendline and a descending 200 day moving average.
- XHB: Homebuilders were especially strong today. Here we have the same technical story as XLY. Poor action in the financials will not help homebuilders.
- RTH still retains a bullish orientation and has support. Charts for larger box-type stores show many rising intermediate-term trends, but I'm not a buyer.
- XLF needs to hold support around 19.65. A break above today's high could generate some short-term buying interest, so it's prudent to keep overnight positions minimal here. It's also worth considering that everyone is watching this double-bottom, with active trading in SKF by all types of traders. Watch out for short covering rallies.
- SPY: On the 60 day chart you can see the bottom put in over the past two days. There is some resistance in the 129.30 area.
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