Markets fell Wednesday with both the Nasdaq and S&P 500 finishing down almost 3/4rds of 1%. The S&P 500 closed right at its 50 day SMA and the Nasdaq is still a little more than 1% above its to keep things in context. We are heading into the summer months which can be quiet with the doldrums so it will be interesting to see how this rally plays out. With todays weakness all 10 of the major S&P 500 groups were lower, but energy persists near the top again Wednesday with just a .26% loss. The chatter of the possibility of mergers in the sector has died down substantially, which did give the group a momentary boost back in April. Consumer discretionary was the top “performing” group yesterday with a .1% loss. The overall sector is losing a bit of steam but an ETF which we are admiring is the XRT. The small cap retail dominated fund is higher by 5% YTD (double that of the S&P 500) and 17% over the last one year period and sports a dividend yield of 1%. The fund, which currently sports a 102.60 cup base pivot point, contains an interesting mix of characters with NFLX NTRI AMZN and RAD among its top ten. Below is how we highlighted DPLO, the second largest component in the XRT in our Monday 5/18 Game Plan. The IPO has been very volatile the last 2 sessions declining almost 9%.
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