Inflation worries weigh on US consumer confidence in May - Reuters
Macro
US consumer confidence deteriorated further in May as inflation concerns, high gas prices, and elevated cost of living weigh on sentiment — with surveys showing roughly 2-in-3 Americans cutting back on spending. The setup creates a bearish feedback loop: if consumption softens materially, discretionary retailers and consumer credit names face downward estimate revisions ahead of Q2 prints.
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↓ SHORT-6% target+3% stop4-8 weeks, into Q2 earnings season
Short consumer discretionary via XLY as weakening sentiment and spending cutbacks set up downside risk into Q2 earnings.