Markets aspired to make it 3 for 3 Thursday, but came up just short after reversing late in the day, as benchmarks (S&P 500 and Nasdaq) made it almost precisely back to the intraday highs that were made Monday. The S&P 500 came within one handle of hitting its Monday high, and the Nasdaq within 3. I still remain somewhat bearish, and I am getting lonelier by the day. One of the main reasons for my negativity is the lacking number of breakouts which were recorded in the last 3 sessions. Some encouraging signs are the action in the transports. The IYT finished right near a potential 107.26 3 week tight pattern. A stock in the sector SKYW attempted a breakout of its own today from a 14.03 flat base trigger, finishing pennies shy. On the downside, today we witnessed some more bad reactions to earnings releases from the retail sector. Remember the consumer represents 2/3rds of GDP, so the wave of bad news is a cause for concern. Thursday delivered sour reports from both JCP and SHLD. These have become the redheaded stepchildren of the industry, so is it a company specific issue or is an ominous trend developing? Perhaps it is the latter when a look of other charts in the groups performance is reviewed. A few that come to mind include PETM WFM CHS COH UA ANN DDS.
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