Retail Stocks Not Looking So Good

Looking at the above chart we can see that the Retail Stocks ($RLX) did not really participate in this last leg up in the market..Yes, the RLX did make a new high for this move, but if you look at the ratio line in the lower panel, you will see that the ratio line didn't break hi and is actually showing bearish divergence.. This tells me that the move up in the RLX was NOT impressive and money was NOT flowing into the retail stocks..In fact WMT isn't even close to making a new high..WMT is one of the leading retail stocks and if that stock can't rally, I take that as a warning sign for the retailers.. Notice the MACD is also showing bearish divergence and just days away from giving a sell signal.. I think when the stock market is ready to turn lower or pullback slightly, the retail stocks will lead the way down. Let's wait and see...