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February 28, 2006
Wal-mart Stays Home
The Retail HOLDRS (RTH) surged yesterday, but Wal-Mart was not swayed and remains below resistance. LOW and HD led the way higher for RTH and this is quite positive. However, WMT is still the king of retail and this group is not going far without help from the big cheese. The long-term trend is down and WMT has consolidated over the last two months (gray oval). A break above 47 would be bullish for the stock, the retail group, the Consumer Discretionary sector and the S&P 500. Yes, WMT holds a lot of clout. Failure to break 47 and a move below 44.5 signals a continuation lower and this would adversely affect the S&P 500 et al.
Posted by Arthur B. Hill at February 28, 2006 06:40 AM