Even after a weak retail sales number, consumer discretionary stocks continued their impressive rally, hitting an all-time high Tuesday. And according to one technical analyst, the real discretionary rally could just be getting started.
"The technical action's been very positive over the past few months," said Ari Wald of Oppenheimer. "We remain bullish and recommend an overweight portfolio position."
Retail sales fell 0.3 percent in June, missing economists' expectations for a 0.2 percent rise. Despite the disappointing data, the consumer discretionary sector still is the second-best performing sector in the S&P.
And Wald sees more upside ahead.