On a big burst of volume on January 18th, the SPDR S&P Retail ETF (XRT) broke out from a six week consolidation range. It followed through to the upside on the January 19th and formed an inside candle last Friday. We are stalking this ETF for a possible long entry. Ideally, we would like to see XRT form a pennant formation with a sequence of higher lows (scenario #1), or have it pull back and test its 20-day EMA before moving higher (scenario #2). We are monitoring this ETF carefully for a potential long entry.