XRT daily Feb 3rd
XRT (Retail ETF) has now hit the second target. However, with more downside in the broad markets likely, the retail stocks might continue lower before any meaningful bounce. Regarding the key long-term uptrend line support shown on Friday’s weekly chart, keep in mind that we need to see the XRT print a solid weekly (end of day Friday) close below the trendline for confirmation of a longer-term sell signal. It is not uncommon to see prices break below a weekly trendline only to close back above the trendline by the end of the week. Although XRT is not an “official” trade idea, the retail sector is just one in a growing list of sectors that is trading near a critical long-term support level. My current investment/trading bias remains bullish select commodities & precious metals, bullish Treasuries (prices up/rates down) and bearish equities (the broad market).