“Only 25% of Stocks Are Holding Up”
XLY is in a confirmed downtrend due to rising rates and retail weakness; the death cross signals a heavy pattern requiring time to reverse.
Consumer discretionary, I talked about interest rates on the rise. And these discretionary, particularly retail-related stocks, are getting hit. We are still very much in a confirmed downtrend and then we have these shorter term moving averages closing below the longer term.
This is 21 day down through the 200 and that is noted as a death cross. Quite simply, it creates a heavier pattern so that in an effort to reverse it, it will take a little bit longer but certainly we are seeing weakness in that discretionary area.