While the S&P 500 trades just below record highs, continuing a month-long sideways slide just below the 1,880 level, a growing swath of the market is coming under intensifying selling pressure.
Consider that the small caps in the Russell 2000 are on track for their fourth-consecutive decline on Wednesday as the index rolls down its lower Bollinger Band for the first time since the start of the January selloff. That’s a big warning sign flashing red. All is not well within the market.
One by one, cyclical economically-sensitive sector groups are rolling over. Big tech and biotech have been the biggest laggards recently. But retail stocks are now rolling over after J. Crew noted concern over weak traffic trends on Tuesday, bringing out the sellers in a big way.
As a result, the Retail SPDR (XRT) is looking about as appealing as a cold shower, falling out of its month-long trading range on a surge of negative volume. Here are five industry stocks you need to avoid, or could even consider playing on the short side: