The Consumer Discretionary SPDR (XLY) surged over 10% this month and then stalled with two doji at the end of last week. These candlesticks signal indecision that can foreshadow a short-term pullback. Also notice that 14-day RSI moved above 70 to become overbought for the first time since early August.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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