Don't Ignore This Chart!

Three Key Groups Lagging in April


The S&P 500 remains in an uptrend and hit a new high on Monday, but some key groups are showing signs of selling pressure in April. The PerfChart below shows month-to-date performance for the S&P 500 SPDR (SPY), the Equal-Weight S&P 500 ETF (RSP), the Equal-Weight Consumer Discretionary ETF (RCD), the Retail SPDR (XRT) and the Home Construction iShares (ITB). SPY and RSP represent the broader market and both are up in April. Even though the broader market is in good shape, the consumer discretionary sector is down 2.46% and under selling pressure. Weakness in this key sector can be attributed to housing and retail. Notice that ITB is down over 8% and XRT is down over 4%. Chartists should keep an eye on these three groups because they are important barometers for the domestic economy. Further weakness in these three could extend to the broader market and lead to a correction. 

Click this image for a live chart.  

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at 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. Learn More
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