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April 18, 2006

Retail HOLDRS (RTH) Breaking Down

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After a support break last week, the Retail HOLDRS (RTH) is leading the way lower again this week. The breakout at 99 failed miserably with a bearish engulfing on 7-Apr and a break below the April low. This group is showing relative weakness and this bodes ill for the Consumer Discretionary sector and the S&P 500. RTH would need to bounce back above 98 to undo the technical damage of the last six days.

Posted by Arthur B. Hill at April 18, 2006 10:26 AM

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