Strength In The Retail Sector Could Forecast Higher Prices For This Fund
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– ETF Watchlist –
If you’re on the bull side of the market, which most of us are at this point, after all we are in a bull market, then you are probably looking forward to a big move after this period of slight pull back. That is the thought process we have anyway. Our view, the market is currently taking a little breather before another leg higher.
If that is truly the case, now is a good time to start looking for ways to position ourselves to the upside. Given that is our view, we believe we have pinpointed a good area of the market to eye for an entry, the retail sector.
SPDR S&P Retail ETF (XRT)
As the retail shopper still holds on to their strength even despite inflation, the sector seems to be holding up well also. Lucky for traders, the XRT is sitting at a support level of right around that 60 area. If the market can find some strength, then we would like to see a strong move off this level.
A break below this level would likely just postpone this trade by a week or so, given June is not the most bullish time of year, however, July often tends to be just that, a bit more bullish. If we can get some movement in the upward direction from the rest of the market, look for XRT to give a strong move off the current level.
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