Chart of the Day - Tuesday, September 6th, 2022

Today’s Chart of the Day was shared by Aaron Jackson (@ATMcharts). It's a daily candlestick chart of the Consumer Discretionary sector ($XLY) over the past year. This is the 3rd largest sector in the S&P 500 behind Technology & Health Care. The 5 largest stocks in this sector include; Amazon, Tesla, McDonald's, Home Depot, and Nike. Aaron points out that this key sector is testing a potential support zone around $153-$157. This level is crucial because it represents the June highs and the 50-day moving average. The S&P 500 has already broken below its respective June highs and its 50-day moving average. Will the Consumer Discretionary sector follow suit? Or, will buyers defend this key level? Either way, this is going to be an important test to watch this week.