Retail rose 4.10% on Tuesday so the consumer is spending more money, most likely out of necessity for essential items.
XRT is showing strength but is still below the 200-day moving average.
Retail is breaking out.
Inflation and higher prices are forcing consumers to spend more. Analysts expect to have improved retail sales, especially in the grocery market category.
Consumers around the globe are being hammered by inflation.
Savings rates and personal spending in the U.S. are impacted, as consumers struggle with spending more and rising prices.
Modern Family Daily Performance
There is overhead resistance over 4,260, and if the S&P 500 goes through this price level, it will be bullish for the current uptrend.
My previous target for the short-term trend for the S&P 500 was 4,170, which is also approximately a hair above 50% of the previous downtrend beginning in April and bottoming in mid-June.
Watch for divergences building in the credit markets and SPY and TLT.
Watch Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA) if they can hold current price levels, broader bullish implication on the NASDAQ.
The ARKK ETF is a good guidepost on disruptive tech, genomics, and robotics and a barometer of risk-on sentiment.
Volatility and commodity price extremes are to be expected according to history in times of bullish commodity cycles.
ETF Summary
S&P 500 (SPY) 431.99 now resistance with support at 427.17
Russell 2000 (IWM) 202.37 the resistance with support at 199.34
Dow (DIA) 343.62 resistance and support at 339.20
Nasdaq (QQQ) 334.80 first level of resistance and support at 329.05.
KRE (Regional Banks) 69.02 resistance, support level at 67.85.
SMH (Semiconductors) 246.45 resistance and support at 241.83.
IYT (Transportation) 251.71 resistance and support at 247.21.
IBB (Biotechnology) 134.39 resistance point and 131.65 is support.
XRT (Retail) 76.15 resistance point and with support is at 71.65.