Global Macro: A Closeup on the Asian Pacific
The last chart is of SPDR S&P Retail ETF (XRT) over S&P Equal Weight ETF (RSP). This pair has shown considerable strength in 2013, but looks to be at a point of resistance. April retail sales release Monday, and should give this pair's direction more clarity.The report will also tell a lot about the strength of the underlying economy. The economy is driven by the consumer, as consumer spending accounts for around 70% of U.S. GDP. The equity markets have seen a huge run up lately, and if retail sales show that consumer spending is strengthening, then this could be a catalyst for further US equity strength.
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