A Possible Floor in the Retail Space

By | February 27, 2016

The SPDR S&P Retail Index (XRT) has broken above its 50 day moving average and a seven month downtrend line. Daily moving average convergence/divergence, which is overlaid on a weekly histogram of the oscillator, is tracking higher and above its centerline on both timeframes, and Chaikin money flow is reflecting renewed buying interest.

99989.XRTchart

It is not likely the ETF will continue to rally with the same momentum seen earlier this month and it could experience a pullback over the short term, but it does look like it has established support in the $41.00 to $42.00 area.

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