The charts may look ugly, but the severity of the sector's losses could set the group up for a bounce, Maley said.
"The one thing that we see now is that in the most recent decline, volume has kind of petered out, so I'm starting to wonder if this thing's getting washed out a little bit," he said. "If you look at its weekly RSI chart, it's as [oversold] as it's been since, again, those 2009 lows."
The XLP's relative strength index, a momentum indicator, declined to 28.3 at the beginning of May, but rose back slightly to 36.4 on Wednesday. A level below 30 generally indicates oversold conditions.
"I'm kind of hoping the thing can bounce back a little bit but with so many stocks flat on their back it's hard to be real confident about that," said Maley.
The headwinds facing the sector look difficult to overcome, according to Dennis Davitt, partner at Harvest Volatility Management.
"They've been hit by higher interest rates — people feeling that they're not going to be as attractive so people are moving out of those stocks and moving into maybe just plain old debt-yielding instruments — and higher commodity prices," Davitt said on Tuesday's "Trading Nation."
The XLP ETF was up 0.4 percent Wednesday in its first positive session of the week. The group is tracking for a nearly 2 percent decline for May.