However, XLY “is just a hair’s breadth away from breaking its 200-day moving average to the downside. If that happens, then the list of sectors putting a drag on the overall market will expand, possibly past the tipping point,” writes Kahn for Barron’s.
Industry weakness is providing another clue regarding the weakness the broader discretionary group is currently contending with as media and gambling stocks have pulled back over the past month.
The SPDR S&P Retail ETF (NYSEArca: XRT) is off 4.5% over that time, but there are some signs of life. The First Trust NASDAQ Global Auto Index Fund (NasdaqGM: CARZ) is higher by 4.4% over the past 30 days.
XLY/XLP Ratio Chart
