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.
Momentum Indicator for VCR turns negative, indicating new downward trend
VCR saw its Momentum Indicator move below the 0 level on July 14, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned negative. In of the 83 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where VCR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for VCR turned negative on July 14, 2026. 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 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
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 .
Bullish Trend Analysis
VCR moved above its 50-day moving average on July 09, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for VCR crossed bullishly above the 50-day moving average on July 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for VCR moved above the 200-day moving average on June 15, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where VCR advanced for three days, in of 331 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 280 cases where VCR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
Category ConsumerDiscretionary
Advertisement