Consumer Discretionary sector under pressure as retail and home construction stocks decline. Real Time Economic Calendar provided by Investing.com. **NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends. Stocks Entering Period of Seasonal Strength Today: No stocks identified for today The Markets Stocks charted a fourth day of gains on Tuesday as investors continue to set aside geopolitical concerns. The S&P 500 Index added almost two-tenths of one percent with nine of ten sectors closing green on the day. The one holdout was consumer discretionary, which shed four-tenths of one percent, dragged lower by retail and home construction stocks. The S&P Retail ETF (XRT) lost 1.84%, trading down to support around $40.50. This level also acts as the basis of a neckline for a head-and-shoulders pattern that would project downside potential towards $33, or over 18% below present levels. The industry ETF has significantly underperformed the market for the past couple of years amidst struggles at brick-and-mortar stores as online retailers cannibalize the space. The downside risks are significant, as too are the implications that it has on the broader economy as consumer spending represents the lion’s share of gross domestic product (GDP). The next period of seasonal for the industry runs from October through November. On the economic front, a report on new home sales fuelled caution amongst investors in homebuilding stocks. Sales fell by 11.3% last month to a seasonally adjusted annual rate of 569,000, missing estimates calling for a rate of 602,000. Stripping out the seasonal adjustments, sales actually fell by 11.5%, much more than the average decline for this spring month of 0.9%. A sizable drop in sales of completed homes and a decline in sales of homes under construction weighed on the overall result. The below average growth in the number of housing units authorized to be built remains a negative influence on sales activity. Seasonally, sales activity of new homes typically declines between now and the end of the year, trending lower from the spring buying season. The iShares US Home Construction ETF (ITB) traded lower following the result, charting an outside reversal candlestick; support remains intact around the 20-day moving average. Seasonal tendencies for stocks in the homebuilding industry are typically mixed between now and October. Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.90. Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite