Retail ETF Eyes Breakout Above July Highs Amid Strong Consumer Confidence
2024.08.28 04:40
In the Economic Modern Family, the most interesting sector is .
After the strong , the ETF looks like a move over July highs should be followed.
The “vanity” trade continues to sit in dormancy, but is now producing a reduced-cost diet/obesity drug.
This is the place to be (vanity trades) as 2024 ends and 2025 begins.
By Vanity I mean all things beauty, makeup, skincare, and athletic wear; areas beat up that could come alive.
My guess is the move really begins in February 2025.
However, is slightly underperforming XRT and must also clear recent highs around 189.
Looking at the consumer discretionary ETF XLY, it is in a bullish phase and above the July 6-month calendar range low.
The Real Motion indicator tells us there is still a bearish divergence in momentum.
Leadership to the benchmark is unremarkable.
Should XRT clear 80 and this clear 190, the odds of a bigger more up are high.
Plus, this would be a boon to the rest of the Family as well.
ETF Summary
- S&P 500 (SPY) 560 pivotal
- Russell 2000 (IWM) 217-227 current range
- Dow (DIA) 410 support
- Nasdaq (QQQ) 475 area pivotal
- Regional banks (KRE) 57 pivotal
- Semiconductors (SMH) 240 important support
- Transportation (IYT) 50-WMA or 64.50 support
- Biotechnology (IBB) 145-150 new range
- Retail (XRT) 75 support 80 resistance
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Back to 2022 levels and resistance-but still strong and risk on unless it breaks 78
