When it comes to the US economy it is all about the consumer.
It's the best gauge of how things are going.
The Consumer Discretionary Index $XLY does a great job illustrating this theme.
After breaking out of a nice base in December, prices are now pulling back to that breakout level, threatening to turn into a failed move.
This zone lines up with the prior cycle highs from 2021.
If buyers are going to step in and show up, this is where it happens. Otherwise, things could get messy.
Bulls don’t want to see this offensive sector losing steam, especially at such a critical level. If buyers don’t step up here, it raises bigger questions about risk appetite and the broader market’s ability to sustain its momentum.
Jeff Macke knows consumers better than anyone.
He just dropped some serious insights on the Off The Charts podcast with Steve and Sean—you gotta check it out. Watch it here.
And if you want more of Jeff’s expert retail analysis delivered straight to your inbox, sign up here for free.
