As for XLY, the non-core consumer goods sector, another large-cap growth sector that performed well on Monday, we note that there is no clear pattern here in terms of the classic formations we are looking for. This is clearly a very large triangle pattern.
The best thing about it, of course, is that the XL Y indicator has proven its ability to respect this line, and that periods of strong weakness have previously been exploited to achieve significant gains.
We saw it again this spring, and more recently in July, and it may happen again in September .
