RTH Retail Weekly and Daily Charts Rising Wedges Negative Divergence

Each of the tops in retail were identified along the way (red arrows) but the retail sector is always the most resilient. Folks will find a way to spend money and buy stuff they do not need even if it means ransacking Grandma's purse. Each pull back results in another spurt higher. The daily chart shows price at the top of the upward-sloping channel. There remains interest in the retail sector at these levels as shown by the volume pop a couple days ago; traders continue to want to ride this horse. The charts are less enthusiastic setting up with rising wedges and negative divergence.

The weekly chart shows that the RSI and money flow, in September 2012, wanted to see another high in price, and that is now achieved. The weekly indicators are all negatively diverged now. A spurt to 47 is not unreasonable, perhaps 46.80, then a substantive reversal. Keystone's 80/20 rule says 46.80 would want to lead to 47.20. RL earnings are on tap today so that will provide a push one way or the other. Projection is for RTH to top out and roll over. Keystone opened a short trade in RTH today. Also holding the thinly traded SZK. XRT is the same set-up and should top in here as well. 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.