Consumer Discretionary Sector Update for 06.29.2008

SELECT SECTOR SPDR CONSUMER DISCRETIONARY ETF - XLY

Monthly chart shows increasing selling pressure during the month of June 2008. Any gains made since the low made in January 2008 have all but been erased. Currently price is below all key moving averages, and below a key LIS (old resistance becomes new support). Look for the current January 2008 support at the .618 fib level to be broken; next target is the .786 fib level at the $24.40 area.

Weekly chart better shows the smaller consolidation range the price has been stuck in. Price is below all key moving averages on this timeframe. Look for the current low to eventually break, with the next downside targets to be $26.38 and then $24.40 area.

Daily chart shows a gap down the last 2 trading sessions of last week, as bears rushed for the exits at the open. While Friday saw bottom pickers showing up at the open, they were not able to keep the buying momentum going, as they were soon overcome by bears. No buy signal/pattern evident on this timeframe as of yet. Based on pattern presented, look for continued weakness and further downside to come.