Volatile market swings has some investors looking for a place to hide out. But for one technician, the obvious choice could be in what's been working all year.
"Consumer discretionary as a whole is probably one of our favorite [sectors] to buy on this market pullback," Ari Wald said Monday on CNBC's "Trading Nation." The consumer discretionary sector is the best performing in the S&P 500 on a year-to-date basis up 4 percent. And according to Wald, "the tip-off is in the relative trend."
Looking at the XLY, the ETF that tracks the space, Wald compared it to the broader S&P 500. "Through this market setback the XLY has indeed dipped back to some important support levels, but its relative trend has continued to move higher," said Oppenheimer's head of technical analysis. "That's indicating to us that investors have been less eager to sell this sector."