KOHLS AND TARGET LEAD RETAILERS HIGHER -- RETAIL SPDR REMAINS BELOW 200-DAY LINE -- HOME CONSTRUCTION ISHARES FALL BELOW ITS 200-DAY LINE -- SO DO LENNAR AND DR HORTON -- STOCK INDEXES HOLD STEADY AFTER MODEST PROFIT-TAKING
KOHLS AND TARGET LEAD RETAILERS HIGHER ... Chart 1 shows Kohls (KSS) surging 7% to clear its 200-day average and trade at the highest level since November. Chart 2 shows Target (TGT) up nearly 5% and also trading at the highest level in three months. The broadline retailer is also trading right at its 200-day moving average. They're also giving a boost to retail stocks in general. Chart 3 shows the S&P Retail SPDR (XRT) bouncing today. The XRT was recently rejected by its own 200-day line. The flat blue line in Chart 3 is a relative strength ratio of the XRT divided by the S&P 500 (XRT:SPX). It's been a weak performer since the start of the year; and probably needs to clear its 200-day line to start attracting more attention. Retailers are among today's biggest gainers in the Consumer Discretionary SPDR (XLY). Homebuilders are among the weakest.
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Chart 1
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Chart 2
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Chart 3
LENNAR AND DR HORTON SLIP BACK BELOW THEIR 200-DAY LINES... Chart 4 shows the U.S. Home Construction iShares (ITB) trading back below their 200-day average today. Chart 5 shows Lennar (LEN) doing the same. Chart 6 shows DR Horton (DHI) also slipping below its red line. Home construction stocks are the weakest part of the XLY today.
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Chart 4
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Chart 5
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Chart 6
STOCK INDEXES ARE HOLDING STEADY ... Major U.S. stock indexes have backed off from potential overhead resistance at their November peaks. But little damage has been done to their 2019 uptrend. Chart 7 shows the Dow Industrials finding support at its 20-day moving average (green) line. While Chart 8 shows the S&P 500 doing the same. The SPX would have to drop below that initial support line, as well as its red 200-day average, to signal a more serious setback. Sectors are pretty evenly split between small gains and losses today. Communications, cyclicals, and REITS are in the lead; energy, industrials, and materials are lagging behind. Transportation stocks, which remain stalled at their 200-day average, are weighing on the industrial sector. Small cap indexes also continue to meet resistance at their 200-day average, and are starting to lag behind larger stocks.
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Chart 7
