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April 12, 2006
Retail Gets Slammed
Weakness in the broader market can be blamed on retail ($70 oil). The Retail HOLDRS (RTH) failed to hold last week’s gap and moved sharply lower the last three days. The falling flag breakout at 99 failed to hold and I must now consider a more bearish pattern. The blue trendlines show a rising wedge. The stock broke the lower trendline, formed a lower high on Friday and broke support Tuesday. This is bearish for retail, and the Consumer Discretionary sector.
Posted by Arthur B. Hill at April 12, 2006 07:14 AM