Retail Rebound?
With constant media banter about the R-word, it is possible that the sector that could be most sensitive to it flashed a bottom last week. The daily chart of the XRT below, which is a more diverse and more balanced ETF than the XLY, flashed brilliant action to end last week. Technicians believe, as in life and markets, it’s not how you start but how you finish (CLOSE). There is still plenty to prove looking at the WEEKLY chart it has not recorded back-to-back gains since late November and early December, the first of which was a bearish shooting star candle not long after a bull flag breakout (notice the bullish piercing line last week with very robust trade). Of course, if the big boys in the XLY in TSLA and AMZN get going it will boost not only discretionary but the overall market too. The former is sporting a bear flag, but if it could break ABOVE the 270 area that could get it driving in the right direction, pun intended. The MONTHLY chart of AMZN has some green shoots depending on how it could CLOSE out April. Thus far it is bouncing off the 50-MONTH SMA, reminiscent of the bullish hammer candle last August which set off a 5-month win streak. All bets are off if the XRT and XLY undercut their intraweek lows from last week.