Retail Index (RLX) - Leads The Market Lower

One of the weakest groups today were the retailers which lead the market lower in the afternoon. Above is a 60 minute chart of RLX (retail index) and in the lower panel is the MACD indicator. You might be wondering why I keep posting 60 minute charts and the answer is because of the recent volatility.  The swings are large enough to justify looking at intra-day charts.

In the above chart you'll notice that the retail index tested key resistance which obviously held. The uptrend line has also been broken and the MACD indicator has also crossed confirming a sell signal.  This chart is a wonderful example of putting it all together. All the pieces of the puzzle came together today giving a sell signal.

If you look at other 60 minute charts such as the S&P or NASDAQ, you'll see pretty much the same bearish setup as the above chart which is why I have to be looking for lower prices in the days to come.