Michele Schneider | May 08, 2024 02:08AM ET
The choices we make as consumers collectively shape the economic landscape, and our spending patterns influence the well-being of our communities and the nation.
And Granny Retail XRT always has a lot to say about the consumer and the markets.
What does the chart tell us about the state of the economy and the markets?
With our comments this week on how transportation IYT is a laggard, XRT is doing ok.
BUT
XRT failed to hold the 50-DMA.
While XRT is above the January 6-month calendar range high, it is underperforming the benchmark.
Plus, real motion shows no divergence, so that tells us XRT can climb higher from here.
However, we must also watch for the recent rally to run its course, forcing XRT back down to test lower levels.
Most importantly, is that oil and gas levels have come off from their highs, which helps of course. But can that last?
Consumer confidence is lower than it has been.
Interest rates on housing are high, and prices are not dropping.
Plus, shelter costs have risen.
Watch XRT carefully this week.
That should tell us very quickly and reliably what the next big move in the market is.
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