Markets rose Wednesday with the Nasdaq once agin leading the way with gains of 1%. The S&P 500 is rallying closer toward its 50 day SMA and it will be interesting to see if it can reclaim that line about a 1/2 percent away. Welcome today was that volume did accompany todays move higher. Remember technicians take notice off many of the negative divergences occurring, such as declining numbers of stocks participating or names above their important moving averages. However, they are just signals that warn of a potential incoming downturn. What is the only deciding factor is PRICE, and for the time being that is not cooperating with bearish viewpoints, and until it does the trend must be respected. Those who fight the tape have paid a very expensive tuition thus far. More impressive was the market acted well, brushing off poor news in the retail group, whose sector is a good barometer to how well the consumer is feeling. M fell more than 5% but did catch good support at its 200 day SMA, which many names will find buyers. It lowered guidance as well, and like KORS, selling merchandise at discounted prices cut into the bottom line. FOSL also was hit today to the tune of 6% after a poorly received earnings report. It is developing a reputation as a weak performer after releasing numbers. It slumped 10.3% on 5/14 and 4.1% on 11/6/13. Even its 2/12 report which it gained 3.5% recorded a bearish reversal and lost 4 handles off its intraday high. Perhaps its name is appropriate and this name will become buried and forgotten one day.
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