Chart of the Day - Wednesday, January 28, 2026

January 28, 2026

Consumer Discretionary ETF $XLY has been basing for months

It's going to be awfully hard to be bearish if this resolves higher pic.twitter.com/F3IHPtEKvO
— Justin Spittler (@JSpitTrades) January 28, 2026

🏆 Today’s Chart of the Day was shared by Justin Spittler (@JSpitTrades).

Consumer Discretionary ($XLY) has spent the last year carving out a potential cup-and-handle base.
With Tesla ($TSLA) reporting after the close today and Amazon ($AMZN) next week, positive reactions could act as catalysts for renewed momentum with both stocks representing roughly 40% of the sector.
As Justin notes, rotation into Discretionary would be the opposite of bearish, though confirmation from the equal-weight Discretionary ETF ($RSPD) would add further confidence to the bullish setup.

The Takeaway: Consumer Discretionary continues to consolidate, with Tesla and Amazon earnings serving as potential catalysts for an upside resolution.

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