Don't Chase Retail's Downside

SPDR S&P Retail ETF (XRT) held two-month support near $59 until Thursday and then broke down, despite a sharp decline in energy prices that should help cost conscious consumers this summer. Of course, the sector is caught up in a macro wave of selling pressure that has gripped world markets since the Greek and French elections two weeks ago.

As it turns out, retail sector technicals have been deteriorating since March with a slow exodus of shareholders that turned into a near panic this week. This persistent distribution has tracked, step for setup, mediocre U.S. economic data that shows the recovery slowing down or stalling out, depending on your paranoia level....454 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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