Consumer discretion at the intersection: Key ideas News ad

The consumer discretion sector represented by the SELECT SPDR ETF discretion consumer NYSEARCA: XLYRecently restored the average movements of the keys, signaling stability in his constant ascending trend. These events take place against the backdrop of a noticeable shift regarding US consumer sentiments, raising questions about the nearest sector trajectory.

Changing consumer moods in the USA

While XLY ETF discovered support near the support zone of its upward trend and restored critical average, recent data stain a more cautious picture of consumer moods. According to the Consumer mood index of the University of Michigan, the mood fell to 71.1 in January 2025, compared with 74.0 in December, which marked its first decrease in six months. This DIP emphasizes potential concern about the economic environment and consumer behavior.

Supporting this narrative, the growth in retail sales in December amounted to 0.4% of the month, which will not reach expectations. In addition, a slight increase in the unemployed claims to 223,000 as of January 18 suggests that although the labor market remains strong, caution penetrates the decision -making by consumers.

Despite this, the technical indicators of the sector offer a contrasting perspective. From the point of view of technical analysis, the positioning of the Xly ETF remains constructive, leaving investors with key questions about its perspective.

Technical Perspective: XLY finds support against the background of changing moods

The consumer discretion of the Sector Scred monitors the consumer discretional index covering industries such as retail trade, media, hotels, leisure, clothes, cars and diversified consumer services. Despite the weakening of mood indicators, ETF recently checked its support for the upward trend of about $ 220 and held the company.

Over the past week, ETF restored their 20-day and 50-day simple sliding medium (SMA) and consolidated above these levels. This behavior involves the formation of a higher low level in its wider ascending trend, strengthening the idea that the technical structure of the sector remains untouched.

Nevertheless, a significant pulse shift can occur if ETF cannot hold the support level of $ 220. The gap below this level will confirm the lower high level within the rising trend, signaling the potential change in the trend. Such a price action in combination with weakening moods can justify a more cautious, risky approach to the sector.

Profit as a catalyst: the next 2 weeks are crucial

The XLY ETF trajectory may depend on income reports from the two largest possessions, Amazon.com NASDAQ: Amzn And Tesla NASDAQ: TSLAWhich together account for almost 40% of the weight of the fund. It is expected that these income issues will operate as significant catalysts for the sector, potentially determining whether ETF supports its upward trend or gaps below key support levels.

Amazon earnings: February 6

Amazon, the largest ownership of the ETF with a weight of 21%, plans to inform about his income on February 6. As the world’s largest company in e -commerce, Amazon results will provide critical information about consumer expenses, especially in the festive season.

Strong performance can strengthen the stability of the sector, while the weaker than expected, the results increase fears about the stability of consumer demand.

Tesla income: January 29

Tesla, the second place of the ETF with a weight of 19%, will report their income this week, on January 29 after the closure of the market.

Being a leading manufacturer of electric vehicles, Tesla income will reflect its individual performance and will give an idea of ​​wider trends in discretion and consumer confidence.

The key point for the discretion of the consumer

While the consumer discretion SELECT SPDR ETF has retained its technical upward trend, the sector is faced with potential problems of reducing moods and careful consumer behavior. The support level of $ 220 remains a critical line in the sand for ETF. The gap below this level can signal a wider trend, consistent with weakening macroeconomic indicators.

The upcoming reports on income from Amazon and Tesla will probably become decisive events, forming the impulse of the sector on the rest of the quarter. Investors should carefully monitor these events, since they will ensure valuable clarity with respect to whether the upward ETF trend is held or becomes a more defensive position.

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