XRT, the S&P Retail ETF, Day chart shows price has completed a Bearish Gartley pattern.

XRT Day Chart

This is a decisive area to define if this resistance test is merely a target in route to higher targets or a place for a pullback in way of a Retrace Mode.  There is some expansion so this does suggest a stall or pullback.  As long as holds below 48.37 there’s a probability of Retrace Mode with the ideal minimum target at 44.26.  This scenario will have a very important support test at the gray target.

The other decision could be encouraged by the Santa Claus Rally which would entail a hold above 48.26 with conviction.  This scenario has the next upside targets of 51.25, 53.58 and 54.91 which offer more decisions because they are “probable” rejection regions.

To zoom in on what’s going on at this Day chart’s PRZ, I’m looking at an STRange 16 bar chart.  This shows there is stall between the Gartley PRZ 48.37 and 47.70.

XRT 16 STRange Chart

This chart interestingly enough has a brown colored Bearish Crab PRZ at 48.30, this is really big convergence!  I’m keeping an eye on RSI and HSI to confirm continued stall or Retrace Mode attempt.  This chart has initial pull back targets at 47.14 and 46.5.  These both will be important support tests.

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