The Consumer Discretionary sector is experiencing a notable downturn, having fallen approximately 9% relative to the S&P 500 over the past couple of months. February 2025 is shaping up to be the worst month for the sector since December 2022, with a decline of 6.3% reported thus far. Analysts indicate that the sector is currently in an extreme oversold position, contrasting with the Consumer Staples sector, which is viewed as overbought. As several retailers prepare to announce their Q4 earnings this week, the relative strength charts for both Consumer Discretionary and Consumer Staples are converging towards zero, indicating a significant shift in market dynamics.