“On a chart of the consumer discretionary-tracking ETF (XLY), Gordon points out that XLY needs to complete the fifth and final wave of the Elliot Wave theory. The classic theory, in this case, would mean that XLY would need to make one final rally higher,” according to CNBC.
“Personal income, reflecting Americans’ pretax earnings from salaries and other sources including investments, rose 0.4% in May, in line with economists’ expectations,” reports the Wall Street Journal. “Americans moderated their spending in May after two strong months of growth, as the 0.2% increase was the weakest since February.”
Amazon’s famed Prime Day is approaching over the next few days and the back-to-school shopping season could be another near-term catalyst for XLY and other discretionary ETFs.
For more information on the consumer sector, visit our consumer discretionary category.