Chart of the Day - Tuesday, December 20th, 2022

Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It's a daily candlestick chart of the Consumer Discretionary sector ($XLY) over the past three years. Steve points out that Consumer Discretionary stocks are breaking below their pre-Covid highs, around $132. This level has weathered several tests this year, but it finally cracked. $XLY is down more than -10% so far this month, and -36% YTD. The sector's two largest components, $AMZN & $TSLA, have been weighing it down recently, as both stocks have also sunk to multi-year lows. This is the 4th largest sector in the S&P 500, and its relative performance often leads the broader market higher or lower. It's concerning to see this sector breaking down on both an absolute & relative basis like this.