XLY Watch

The exchange-traded fund that tracks the consumer discretionary spending sector, XLY, is showing a bull signal on the parabolic sar. It has been in bear phase for the past two trading days.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
XLY $34.83

The bull signal is with a strong uptrend that began in mid-February and has produced a high average directional index of 45.


You are here:

• Reversal
• $36.86, +5.8%
• $35.00, +0.5%
• Now $34.83
• Reversal
• $33.93, -2.6%

Beginning around $36 the price enters congestion caused by the topping activity that dominated XLY in 2007. So, once $36 is pierced, I think the gains become harder to attain.

Also, note the weak macd and stochastic readings on the glance.

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This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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