The Retail SPDR (XRT) has been one of the strongest industry group ETFs this year with a 25+ percent advance. Even though the ETF is looking overextended as it hits the upper trend line of a rising channel, it is by no means weak. Notice that XRT has traded in the upper half of this channel for most of 2013. Also notice that CCI has been positive since the first week of January. Any weakness would be considered a correction within the bigger uptrend. Broken resistance turns first support in the 84-85 area and January support is set in the 75-76 area.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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