We noted in a tweet on Friday that the chart of $XRT had the looks of a potential bear flag.

It reversed on Friday in the vicinity of the 61.8% Fibonacci Retracement of its March-April decline, also closing just below the 50-day SMA. Sure enough, $XRT opened weak this morning (the Target news didn’t help), though it has recovered somewhat with the broader market. If the bear flag is valid, look for more downside in this ETF, provided the 61.8 Fib level isn’t breached on a closing basis (approx 84.75).