Intermarket Sector Battle: Russell 2000 versus Retail 

russell 2000 elf small caps stocks index bearish investing analysis chart image

Just look at the March lows in Russell 2000 ETF (IWM).

Now look at the March lows in the Retail Sector ETF (XRT).

xrt retail sector bearish performance lagging market chart image year 2023

So who is right?

IWM has moved up for the March lows and to start the week, took the lead. 

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IWM cleared the 50-DMA in price now in recuperation phase.

Real Motion, our proprietary indicator that lets you see hidden strength or weakness during market trends-right now is as interesting as the diversion in price between IWM and XRT.

IWM’s momentum indicator cleared the 50 and 200-DMAs changing phase to accumulation.

That is a bullish diversion for IWM as the price is still under the 200-DMA.

The retail sector (XRT) on the other hand, shows momentum declining and below both moving averages.

However, could be a mean reversion forming. Or at least we hope so.

XRT price sits at the March lows and at the 6-month calendar range low.

It must get game, or I would assume (like Regional Banks KRE), it is flashing a huge warning. 

Stock Market ETFs Trading Analysis & Summary:

S&P 500 (SPY) 23-month MA 420 Support 415

Russell 2000 (IWM) 170 support – 180 resistance

Dow (DIA) 336 the 23-month MA

Nasdaq (QQQ) 336 cleared or the 23-month MA-now its all about staying above

Regional banks (KRE) 42 now pivotal resistance-37 support

Semiconductors (SMH) 23-month MA at 124 now more in the rear-view mirror

Transportation (IYT) 202-240 biggest range to watch 

Biotechnology (IBB) 121-135 range to watch from monthly charts

Retail (XRT) This could be the new harbinger like KRE was in March. Poor Granny.

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.