Markets finished just off afternoon highs, the Nasdaq up .4%, versus the S&P 500’s .3%, but more impressive was the rebound off the early session lows. Both benchmarks are residing just below their big numbers of 3700 and 1700, and they have to be given credit for not rolling over when some decent retail sales data went unloved. Talking about retail, some concerns may be potentially popping up. Leaders in the group, may be flashing warning signs. M is still swimming below its 50 day, but may be constructing a new base. Both GPS JWN fell more than 5% last week. GPS found good 50 day support, but JWN met firm 50 day resistance today. YUM dropped 2% today, on weak Chinese sales, which account for a bulk of their revenue. Its decline was halted precisely at its 50 day SMA intraday. On the topic of China, the FXI rose for a fourth consecutive day gaining more than 2%, and its readying itself for a 200 day test just above. It could potentially develop a double bottom base if ot can reclaim the 200 day, but spending the majority of its base underneath the 200 day makes it failure prone.
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