From failed moves tend to come fast moves in the opposite direction. Is that what’s happening here for the Consumer Discretionary sector?
Despite its strong performance so far in 2023, the sector is still more than 25% from its prior bull market peak. For context, only Real Estate has failed to recover more of its decline.
It looked like Discretionary was poised to play catchup when it was the top performing sector in June. So far, though, prices have been unable to absorb resistance from last summer’s highs. That puts a ceiling on near-term gains for the sector.
