Still, the group offers potential.
“XLY is forming the handle portion of the pattern, holding support from the rising 20-day EMA. We are monitoring the price action for a potential buy entry. The action should hold above $65 to keep the pattern on track in the short-term,” added Wagner.
The discretionary rebound is also showing signs of being broad-based. Since June 10, the Market Vectors-Gaming ETF (NYSEArca: BJK) is up 4.5% while the PowerShares Dynamic Media Portfolio (NYSEArca: PBS) is up 3.4% in the past month.
Consumer Discretionary Select Sector SPDR
Tom Lydon’s clients own shares of Amazon.