Consumer Discretionary Poised To Lead Market Higher

Last week, there were eight industry groups within consumer discretionary (XLY) that gained 2% or more, lead by the rapidly-improving apparel retailers ($DJUSRA), which gained 4.57% and broke out to 5 month absolute and relative highs:

The strength in the DJUSRA helped the XLY bounce off trendline support this past week.  I believe the XLY is trending higher both short- and long-term.  Looking at the potential short-term uptrend channel, the highs could get very exciting, but first we'll need to negotiate the double top (red arrows below) that took place in July and September:

I believe we're going to see a big push higher in the S&P 500.  There are three signals that, if triggered, would almost guarantee higher prices ahead.  I'll discuss all 3 and point out several individual stocks that look enticing to me as we head into their earnings reports in this afternoon's "Q3 Earnings Sneak Preview" webinar.  It starts at 4:30pm EST and you can CLICK HERE to register.  It will be open to the public and is totally FREE!  Hope to see you there!

Happy trading!

Tom