Markets shrugged off some lukewarm weakness twice today. The Nasdaq was down .5% in the late morning and again in mid afternoon trading and refused to go lower. The S&P 500 eked out a very small gain while the Nasdaq fell .2%. Some more retail names went lower today, adding to the worrisome list. Of course BBBY sank 12% after yesterday earnings report after the close was not well received. Bothersome in regards to BBBY was that it was a leader with good technical action. It traded tight, spooning its 50 day for the most part on the way up. When I see a retail name like PIR whose chart make my eyes hurt just looking at it, it does not surprise me. PIR fell more than 11% Thursday. Another retail name that was acting well until today was SIG. It pierced its 50 day SMA today dropping more than 7%. Upsetting about this name was that it just broke out from a 79.42 flat base trigger on Tuesday. Volume was sufficient, but when you see action like this especially this quickly after a breakout it is concerning. Perhaps it will find bids at its 200 day near 72. Falling in sympathy was ZLC losing more than 14%. This name was on my long list for a potential breakout above a 17.20 double bottom trigger. That is why we WAIT for price confirmation. As always stick with best of breed. TIF is acting very well near all time highs and nicely holding above 90. Remember names that trade above 90 very often go on to reach par.
This article requires a Chartsmarter membership. Please click here to join.