The popular SPDR S&P Retail ETF (NYSE:XRT) is pulling back again today. The XRT made a short term top on March 1, 2019 at $46.93 a share. Since that high pivot the XRT has declined lower and is now trading at $43.73 a share.
The daily chart still has a lot of support around the $44.00 level which is the where the 50-day moving average resides. Many traders and investors are always watching and following this key moving average as a signal of strength for a stock. Basically, as long as an equity trades above the important 50-day moving average it is viewed as a sign of strength.
On the flip side, when that key moving average is broken many traders and investors will view that equity as a sign of weakness. Many investors should also remember whenever an equity rallies for 10 weeks it may just need to pullback a little in order to digest the recent gains. A weekly chart close below the $42.00 level could spell some real trouble for the XRT. This was where the XRT broke out on Jan. 7, 2019.
