Until about four trading days ago the important retail sector was leading the industry group in the stock market.. This morning, the retail sector is leading the major stock market indexes lower. The important Market Vectors Retail HOLDRS ETF (NYSEARCA:RTH) is trading lower by 0.38 cents to $41.34. This ETF will have intra-day support around the $40.85 area.
Most leading retail stocks are dropping sharply today after Fossil, Inc. (NASDAQ:FOSL) reported earnings and guided lower for the next quarter. Some leading retail stocks that are coming under selling pressure include Lululemon Athletica inc. (NASDAQ:LULU), The Gap Inc. (NYSE:GPS), and Abercrombie & Fitch Co. (NYSE:ANF). All of these stocks should have further downside in the near term.