The breakout to new highs in the XRT, ETF for the retail stocks, gained tons of attention several weeks ago as being a wildly bullish development not just for the market but also the U.S. economy at-large.
That talk, though, has since fallen by the wayside as the ETF not only faded off those highs, but continues to weaken below the prior highs. Hence, the issue is whether they have effectively sprung a “bull trap,” or false breakout before a correction ensued. I would key off the reaction to the 50-day moving average (dark blue line) this week. Bulls had better defend it or I believe we see another uptick in selling.
Elsewhere, NQ is a bastion for momentum traders today, with good action. And BBRY is coming in some after a decent move in recent weeks.
What are you trading this morning?
_______________________________________________
Ha, nice pic.
Trying OLED again. Just a small call position.
Dude is kind of a G though.
After a weak bounce off the 50day, earlier, XRT is once again testing it as I write.