Retail sector ETF warns of consumer struggles amid rising costs; small caps hold key support levels.

The Retail Sector ETF (XRT) is showing warning signs as consumers face pressure from rising costs and slowing momentum, indicating potential weakness in retail stocks. Meanwhile, the Russell 2000 ETF (IWM), representing small-cap stocks, is maintaining key support levels, suggesting these stocks might still have resilience. The analysis highlights critical chart levels such as moving averages and support zones that could influence the market's next major move. If these support levels hold, the broader market may stabilize; if they break, market risks could increase rapidly.