Last week, there were eight industry groups within consumer discretionary (XLY) that gained 2% or more, lead by the rapidly-improving apparel retailers ($DJUSRA), which gained 4.57% and broke out to 5 month absolute and relative highs:
The strength in the DJUSRA helped the XLY bounce off trendline support this past week. I believe the XLY is trending higher both short- and long-term. Looking at the potential short-term uptrend channel, the highs could get very exciting, but first we'll need to negotiate the double top (red arrows below) that took place in July and September:
I believe we're going to see a big push higher in the S&P 500. There are three signals that, if triggered, would almost guarantee higher prices ahead. I'll discuss all 3 and point out several individual stocks that look enticing to me as we head into their earnings reports in this afternoon's "Q3 Earnings Sneak Preview" webinar. It starts at 4:30pm EST and you can CLICK HERE to register. It will be open to the public and is totally FREE! Hope to see you there!
Happy trading!
Tom
