Chart of the Day - Tuesday, July 1, 2025

🏆  Today's Chart of the Day was shared by Larry Thompson (@HostileCharts). 
 

• Consumer Discretionary ($XLY) has been the worst sector this year, falling -2.2% YTD. However, it has been the fourth-best since the April 8th low, matching the S&P 500’s +24% gain.
   
• After gapping above the AVWAP from all-time highs six weeks ago, $XLY has coiled into a tight $10 range. It has struggled to clear $218, yet it has refused to break below $208, continuously finding support at its AVWAP.  
   
• While Consumer Discretionary is the third-largest sector in the S&P 500, it's notably top-heavy. Just two names—Amazon ($AMZN) and Tesla ($TSLA)—make up nearly 40% of the sector, with weightings of 23.3% and 16.4% respectively.
   

The Takeaway: Despite gapping lower this morning, $XLY is on the verge of breaking out as it tests the upper-boundary of a tight six-week range at $218.