The retail sector is one of the most surprising sectors this year. The resiliency of the great American consumer is truly remarkable. The wealthy continue to support the luxury end of the market and WMT makes new high on the low-end side. When will retail finally roll over? The late March high came with higher highs in the indicators wanting another higher high in price. That high occurred in late April when the negative divergence was obvious and created a spank down. Price recovered in May-June to print new highs. The early July high occurs with negative divergence, this was the smack down Keystone highlighted and played about a week or so ago. Price returns for another higher high again and the negative divergence remains in place so Keystone opened up a new short position in RTH yesterday.
Not only is the daily chart negatively diverged but the weekly chart is as well, an awesome combo that provides street cred to a smack down prognostication. Price may play a little further in the apex of the wedge at 42.60-42.75 but a spank down for price should occur at any time. Initial target is a break of the lower trend line at 42.35-ish, then the 20-day MA at 42. A huge gap exists at 41.3-41.7 that you can drive a truck through which is also where the 50-day MA support at 41.5 sits. Projection is for a smack down to occur in retail at any time with a price move towards 41.5.
For the RTH chart, use search box above for keystone speculator.