Hanging Off A Wedge:

As more earnings from the retail arena come in, HD the 2nd largest holding in the XLY losing more than 5% Tuesday after numbers, certainly did not help the XLY which slipped more than 1%. We are all aware of the issues AMZN is causing the ETF. Below we take a look at the more diversified consumer ETF the XRT, and it is at a line in the sand. It trades near the top of a bearish rising wedge, and has recorded numerous spinning top candles as of late, which often are accurate in signaling the end of a prevailing trend. Interestingly the third largest holding in the fund is a name SBH, which looks like it wants to fill in the earnings gap from the 11/6 session that rose more than 20%. The stock is on a 6 day losing streak, and the bulls should not have the mascara running down their cheeks just yet, but boy was that very round 20 figure hard to CLOSE above this month.

This article requires a Chartsmarter membership. Please click here to join.