Retail On The Move
This morning, the retail sector is showing early strength. The Retail Holders Trust(NYSE:RTH) is trading higher by $1.21 to $106.46 a share. When the retail sector shows intra-day strength it is usually a sign that the major stock indexes will hold up for the day. Over the past week, the retail stocks have been very weak, declining sharply over the past four trading sessions. This index is now oversold and looks to be bouncing higher this morning. Traders should watch for intra-day resistance on the RTH around the $107.00 level.
Other leading retail stocks that are trading higher this morning are Target Corp.(NYSE:TGT), Costco Wholesale Corp.(NASDAQ:COST), and TJX Cos Inc.(NYSE:TJX). These leading retail stocks will usually track the action in the RTH, therefore, when the RTH looks to be coming into resistance it would be prudent to expect intra-day resistance in these stocks.