With expectations ahead for a slowing economy, all eyes are on 2008 U.S. Holiday Sales. Nielson projects $98 billion in expected sales. This forecast would represent at 4.7% increase in sales over 2007, however unit sales are expected to be flat. Should it turn out that consumer spending declines in the fourth quarter, it would be the first fourth quarter declines since 1991.

A glance at retail sector ETFs Retail Holdrs RTH (RTH: Quote, Profile, Advanced Chart, News) and SPDR S&P Retail XRT (XRT: Quote, Profile, Advanced Chart, News) show that both were near year to date highs as recently as early September, only to be followed by year to date lows in October as financial industry woes dramatically impacted the markets and economic expectations.