One of the more noteworthy developments in recent days has been the move in retailers. The SPDR S&P Retail ETF (XRT) fell nearly 4 percent last week and more than 9 percent YTD, trailing the S&P by more than 23 percent. Now the question is whether the selloff has more legs? In fact, according to our “U.S. Market Trading Map”, last week’ selloff indicated a bearish reversal. Below is an update look at a trade in the XRT.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red.
Chart 1.1 – SPDR S&P Retail ETF (weekly)
Our “U.S. Market Trading Map” painted XRT bar in red (sell). After a strong run of outperformance, XRT peaked in early 2015 at 51.25. The ETF rolled over and never looked back. The late August rally tested resistance at the 50-period moving average. Last week’s bearish engulfing bar suggested…Click here to read more.
You see, our trend-following system is very unique as it attempts to pick turns before others see them. Timing is everything and if you’ve applied our system correctly, you should have made a killing in any markets.
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