Consumer Discretionary ETF Hitting Downward Sloped Trend Line as Earnings Season Kicks Off
Stocks have bounce back nicely since the selloff on Christmas Eve. All 10 of the main sectors have gained ground during this period, and the S&P is up 10.43% from the close on December 24 through the close on January 11. The energy sector has led the way during this rally, but the consumer discretionary sector has the second biggest gain at 13.7% over the 13 trading days in question.
While the rally has likely made investors more comfortable, they might not want to get too comfortable as some of the sector ETFs and index ETFs are starting to hit potential resistance points. One sector ETF that is hitting a possible resistance point is the Consumer Discretionary Select Sector SPDR (NYSE: XLY).
The ETF has jumped from down around the $92 level to close at $104.58 on Friday. This puts the XLY in contact with a downward sloped trend line that connects the highs from October and December.
It should also be noted that the XLY is overbought based on the daily stochastic readings and the indicators just made a bearish crossover.
The ETF hitting the trend line at this time is notable as earnings season kicks off this week and three of the top six holdings in the XLY will be reporting quarterly results between now and the end of January. These earnings reports could serve to help the XLY break out of the downward trend or they could be the catalyst that causes it to resume the downward trend.
VCR's RSI Indicator climbs out of oversold territory
The RSI Indicator for VCR moved out of oversold territory on October 13, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In of the 29 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where VCR's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where VCR advanced for three days, in of 356 cases, the price rose further within the following month. The odds of a continued upward trend are .
VCR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on VCR as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for VCR turned negative on September 23, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
VCR moved below its 50-day moving average on October 10, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where VCR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for VCR entered a downward trend on October 15, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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Category ConsumerDiscretionary
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