The S&P Retail ETF XRT was revised lower today on the Symmetrical Triangle breakdown. XRT broke down out of the Symmetrical Triangle pattern after J.C. Penny cut its 2017 earnings forecast on Friday, October 27, 2017. J.C. Penney cut its forecast for 2017 adjusted earnings to 2 cents to 8 cents per share from 40 cents to 65 cents. The breakdown today on XRT wasn’t just about J.C. Penny. Citigroup downgraded Macy’s stock from “Neutral” to “Sell” on Monday, October 30, 2017, citing poor performance from the company’s retail business as the primary reason. Citi analyst Paul Lejuez said that Macy’s has seen significant pressure on sales/margins for several years, and that they no longer make much money as a retailer.
The slow fade downward market prediction for the S&P Retail ETF XRT was moved lower today.