RTH Retail Weekly Chart Rising Wedge Overbot Negative Divergence

RTH retail sector showing another nasty set up. The late October negative divergence set-up was a great short as RTH received its spank down. And now, with firm negative divergence in place (blue lines), overbot conditions that will need to be remedied, and the ominous rising wedge, it is once again time for retail to receive its punishment.

The three busiest shopping days of the year are Black Friday (the day after Thanksgiving), the Saturday before Christmas and today, and the day after Christmas. All three are history until next year. Retail typically tops in December. And with this current chart set up, it is time to play Taps again. One sliver of bull hope is the 20 MA sneaking back above the 50 MA so monitor this closely. Also the RSI 50% level.

Projection is a negative divergence smack down to occur. Retail is topping and rolling over. Expect sideways to sideways lower prices for weeks and months to come. Inverses such as SZK, SCC and dangerous RETS, and shorting XRT, or shorting individual retail names are all possibilties moving forward. Due diligence is required. The smack down will probably be similar to November where RTH fell from 113 to 106 (-6%) within two weeks. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.