A Crucial Test for Consumer Discretionary 🌤️ The Morning Print
Good morning!
Consumer Discretionary is testing its VWAP anchored from the April lows.
This is a pivotal level, and buyers need to step in or downside risk could quickly accelerate.
Let's take a closer look.
Consumer Discretionary ($XLY) has had a tough time breaking above its December 2024 highs.
In January, the group appeared to be completing this base as it pushed to fresh all-time highs, but the move quickly failed.
Now, $XLY is hovering above its AVWAP off the April lows.
This level has held once so far, but a break below would mark a meaningful deterioration in one of the market’s most offensive sectors.
The consumer drives the U.S. economy, and the current setup warrants close attention.
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