The price chart for XLY is starting to bounce from lower support of the 2013 rising channel, while the momentum indicator is turning up from a similar level as the reassertion off the late June low, he said.
“The relative chart is well positioned for a break to record highs, fully expected given the favorable momentum condition,” Coe added.
iShares Russell 2000
Consumer Discretionary Select Sector SPDR
Full disclosure: Tom Lydon’s clients own IWM.