The chart below outlines our the two quant levels that matter here: 1. The “Shark” line (the line where the shorts get eaten if closing above) at $21.22 and 2. The Breakout line (the line where the momentum community will chase it higher) at $22.41.
When Howard Penney and I break down our US “Sector” level risk management levels for our top tier macro clients, the XLY continues to shine as the group to be long for market up moves – the XLF (Financials) remains the weakest.
Keith R. McCullough
CEO & Chief Investment Officer