Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Two Key Groups Take a Turn for the Worse

by September 19, 2023
September 19, 2023
Two Key Groups Take a Turn for the Worse

A few large-caps and large-cap techs are holding up, but other areas of the market are showing weakness. Namely, the Retail SPDR (XRT) and Regional Bank ETF (KRE) are two of the weakest groups right now. These two groups are under selling pressure and this could bode ill for the broader market. Why? Because they represent key areas of the economy.

Two Key Groups Take a Turn for the Worse

The first chart shows XRT with some classic technical analysis at work. First, the long-term trend is down because the ETF hit a 52-week low at the end of May. Second, the ETF bounced in June-July, but this bounce retraced 50-61.8% of the prior decline. A 50-61.8% retracement is normal for a counter-trend bounce. Think of it as two steps down and one step up. The bigger trend is two steps down and the 50% retracement represents one step up.

XRT broke support in mid August to reverse the counter-trend bounce. This break was noted in Chart Trader at TrendInvestorPro. The ETF continued lower into September and hit its lowest level since early June on Monday. XRT is in a clear downtrend and leading lower. The indicator window confirms relative weakness because the XRT:SPY ratio is below its falling 200-day SMA (red line). Retail spending represents around 2/3 of GDP and this chart is not a good sign for the broader market.

The next chart shows the Regional Bank ETF (KRE) with two breakdowns. First, KRE fell around 47% from February to May and then retraced around 50% with a rising channel. This is a big counter-trend bounce or a bounce within a bigger downtrend. KRE broke the channel line in mid August and this signals a continuation of the bigger downtrend.

Notice that KRE fell 14% from late July to mid August and then bounced with a rising flag. Rising flags are bearish continuation patterns that alleviate oversold conditions after a sharp decline. KRE broke flag support on September 6th and this signals a continuation of the July-August decline.

Before leaving this chart, I would like to point out the fractal nature of technical analysis. The rising channel and the rising flag are the same shapes. Both formed after sharp declines and both represent counter-trend bounces. They were also bearish continuation patterns. One pattern formed over several months and the other over several weeks. Patterns can form on any timeframe.  

Check out the Chart Trader report at TrendInvestorPro objective market analysis and trading ideas. Tuesday’s report covered:

SPY and QQQ Test Breakout ZonesSPX Breadth Remains SubduedBanks, Retail and Housing Turn DownBBB Spread Has Yet to WidenTechnology SPDR and four Tech ETFsGold and the Gold Miners ETF

Click here to learn more and gain immediate access.

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Dear Biden Administration: Please Do Not Take Health Insurance Away from Sick Patients
next post
UK economy ‘will be second worst performer in G20 next year’

You may also like

NASDAQ NOSEDIVES, Down Over 2% At The Close!

October 25, 2023

Dividends: Are Adjusted or Unadjusted Charts the Way...

November 23, 2022

The Halftime Show: Don’t Box the Invisible Man...

February 21, 2024

Sentiment Rebounding Too Much

August 10, 2022

S&P 500 Crosses above 200-day SMA: Not So...

December 3, 2022

Gold Price Surge: What Goldman Sachs’ $2,900 Forecast...

October 4, 2024

The Halftime Show: Sectors Bullish Percent Index

March 6, 2023

Soft Landing? Retail Sector Gets up and Boogies

June 3, 2023

At the Edge of Chaos: Liquidity Shows Promise...

November 6, 2022

Emerging Stocks to Watch – Breakouts, Momentum &...

May 17, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025
    • FLASHBACK: Musk accused Trump, GOP leaders of not wanting to cut spending — here’s where they said they would

      June 7, 2025
    • ‘Right down the line’: Medicaid reform in ‘big, beautiful bill’ divides lawmakers by party

      June 7, 2025
    • FAST distribution and IA

      June 7, 2025
    • Why Independent Digital Platforms Are Gaining Ground Among UK Entrepreneurs

      June 7, 2025
    • Is Decentralisation the Future of Online Services in the UK?

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,560)
    • Stocks (3,135)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved