Retail stocks have been getting crushed. But that may be about to end. As you can see on the below chart, the SPDR S&P Retail ETF (NYSE:XRT), which tracks stocks in the retail sector, has broken its recent downtrend line. This means the selloff may be over.
When stocks are heading lower, the bears have control of the market. If a stock is heading higher, the bulls have control.
The breaking or crossing of a correctly drawn downtrend line on a chart shows that the bulls may be taking the leadership away from the bears. This could signal that a new uptrend may be forming.
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