It's been a rough start to third-quarter earnings, with a bulk of companies reporting lackluster results. In fact, 51 percent of the companies that have reported have missed revenue targets, according to Thomson Reuters.
However, one highly regarded technician sees opportunity in one hot sector sector: consumer discretionary.
"It's the sector with the strongest trend of all groups especially versus the S&P 500," said Ari Wald of Oppenheimer on CNBC's "Fast Money" this week. According to Wald's chart work, the S&P 500 Index has seen a lot of technical damage after breaking its four-year uptrend. The benchmark is facing a lot of resistance to break above its 200-day moving average, and struggling to get back to its first-half levels.
First-quarter levels "have been resistance for the S&P 500 and support for consumer discretionary," said Wald.