Is the retail-stock price action meaningful to the broad markets? Does it tell us anything about the condition of the American consumer? Above looks at retail ETF SPDR S&P Retail (NYSE:XRT) on a weekly basis.
The upper left chart reflects the potential that a bullish inverse head-&-shoulders bottoming pattern could be forming, with a test of the right shoulder in play right now at (1).
The lower right chart shows the potential that a bearish head-&-shoulders topping pattern could be forming at (2) above.
Rumor has it that the economy in the states is impacted by what consumers do.
If that's true, the patterns in XRT looks to be pretty important at this time, because depending on which pattern occurs, it could highly impact portfolio construction going forward.