Apparel Retailers Face Resistance as a Group
The chart below plots the DJ Apparel Retailers Index.
The index faces resistance line (1) which has marked cyclical highs for the group in 2000 and 2007.
Until the index can take this resistance to the upside, we’d think this space under-performs the broader market.
As such, industry members with lesser fundamentals and technical patterns likely offer potential short opportunities, especially in the near-term.