Markets may have looked good on the surface Monday with the triple digit rise in the Dow, but the weak close was hallmark bearish activity. Like a calm summer day when the ocean may look like a lake, but beneath the surface is full of action that goes undetected. Financials that looked the best Monday fell hard on Tuesday. GS that I highlighted yesterday fell close to 2% as well as JPM. Select retail names have fared well as M knocked it out of the park today after a well received earnings report. It has carved out a V shaped cup base with a 56.75 trigger, which are more prone to failure however. The men are being separated from the boys in the sector and for every UA or KORS, there seems to be a ULTA, BBY, CONN, WMT, TGT, MAT, BBBY or BKE. Lets remember retail is a vital component of economic growth as the consumer that purchases their products accounts for 2/3rds of GDP. The S&P 500 is having trouble with the all time closing highs with the 1848 handle made on both New Years Eve last year and 1/15/14. It attempted to take it out yesterday but the soft close did it in. Today it was above it intraday as well and failed. The more times it attempts and fails the less confidence it will have going forward. Perhaps its time to revisit our old friend SDS.

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