RTH Retail Daily Chart Overbot Negative Divergence

Keystone started to short RTH today and still holds the leveraged retail short ETF's RETS and SZK. These two are thinly traded dangerous tickers. The red rising wedge, overbot conditions and negative divergence in late March created the price spankdown for RTH. Note, however, that the RSI and MACD line are not negatively diverged (short green lines); they wanted to see another high in price.  Over the last couple days price is higher but not yet to the thin red line to place a matching high. There are no gaps above that need filled so either price makes a matching high, where Keystone will increase shorts, or price will simply roll over from here.

The green circles show many juicy gaps that serve as downside targets. For the next couple days simply watch for the roll over or potential matching high. One-third of the RTH is made up of WMT, AMZN, HD and LOW.  Almost 15% of the RTH is made up of HD and LOW, which have moved up at an obscene pace this year. These charts are negatively diverged which provides the short RTH trade with street cred. The RTH weekly chart is also seting up with negative divergence and has printed a matching high on that chart intraweek. Projection is for the retail sector to finally roll over and die as time moves along. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.