A promising start Tuesday wilted away by the close to finish near session lows. The Nasdaq was higher by .8% just before lunchtime only to see it fritter away to an UNCH finish. It did manage to CLOSE above its 200 day SMA, but below the round 5000 number after Mondays bullish engulfing candle. The S&P 500 dropped .1% after meeting resistance precisely at its 200 day SMA and the neutral 50 RSI. Interestingly the VIX which lost 10% on Monday after one of the worst terrorist attacks over the weekend recording a bearish engulfing candle, gained Tuesday by more than 4% and sits right at 50 day SMA resistance, completing a bullish piercing line pattern in the process. It is currently sporting a double bottom base with a trigger near 28. Retail names were bifurcated Tuesday with some rare recent optimism. WMT and HD gained ground today and WMT was the big surprise gaining 3.5% CLOSING right at the round 60 handle. HD by contrast, a strong leader just 1% off all time highs rose 4.4%. Of course bad news was not far from the sector as two laggards, DKS and URBN reported earnings and fell 9.5 and 4% respectively. Both did record impressive reversals off intraday lows however. DKS is now about 20 handles from intraday highs made back on 1/7 when it explored the possibility of going private. Just another example of why investors should not get sucked into the allure of purchases of potential buyouts. Another former leader EA acted well today recording a bullish counterattack pattern with a strong reversal of its 200 day SMA. It however remains well below a 75.86 cup base pivot point it took out on 10/28 and is now lower 10 of the last 14 sessions. Retail is still in the penalty box.

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