logo
  Join        Login             Stock Quote

Retail ETF Shows No Sign Of Peaking

 April 09, 2010 03:39 PM
 


The SPDR Retail ETF (XRT) is one heck of a bullish chart, which includes names like Whole Foods (WFMI), Sears (SHLD), OfficeMax (OMX), HSN (HSNI), Netflix (NFLX), Dress Barn (DBRN), and Family Dollar Stores (FDO). Purely from a pattern perspective, the XRT shows no sign of peaking, and is poised to hurdle Wed.'s high at 42.64. If the price structure moves vertically higher into a new upleg, it COULD make a run at its upper channel resistance lines in the 44.50- 45.50 target zone, or 5% to 7% more upside.

[Related -Netflix, Inc. (NFLX) Q4 Earnings Preview: What To Watch?]

To do this, the XRT will be climbing on "reduced" momentum, which hit its RSI peak on March 15th, when prices hit a high of 40.32. This means that the XRT has already climbed 5.5% on dissipating momentum. While this is developing and growing concern, obviously the price action tells all -- and it remains up and very strong  for now. That said, the longer the "divergence" continues, the more likely it is that when the XRT turns down, the decline will be significant, and inflict some serious damage to the Feb.-Apr. uptrend. Of course, for argument sake, if the XRT declines to 39.00-38.00 from 44.50, or say 14%- 15%, The Street will be looking at the weakness as a buying opportunity. In any case, for now, as long as 41.00 support contains any forthcoming weakness, the bulls will remain in directional control.

[Related -Family Dollar Stores, Inc. (FDO): More Headwinds Than Tailwinds In Near-Term]



iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.