Markets closed silghtly bifurcated today with the Nasdaq, giving up small ground, and the S&P 500 up fractionally. The Nasdaq was repelled at its big round 3200 handle once again. A few more quality breakouts occurred today by KORS taking out a 58.72 flat base trigger, SJM taking out its own 90.34 flat base trigger on a DB upgrade. KBH benefiting from a solid day among the group just missed taking out a 3 week tight trigger of 19.73. A couple of stocks I have been watching which had negative days today were INVN LVLT. INVN reversed hard after taking out a 15.36 cup with handle trigger intraday. LVLT is a prime example of why I demand a stock close above its trigger, not just take it out during the session. Yesterday the stock took out a 25.02 cup with handle trigger only to fall below it by the end of the trading day. Today it closed lower by 13.5% on earnings. Call me a skeptic on the the strengthening economy, but I have been wrong before, and I will be wrong again, but the recent retail vigor as of late from the likes of KORS RL PVH EBAY URBN FOSL could well be a sign that the economy may be on the mend. Remember 2/3rds of GDP stems from consumer spending and some of the reports we have witnessed recently tell us they have been doing just that.
This article requires a Chartsmarter membership. Please click here to join.