Markets backed off on Tuesday with the averages sustained mediocre losses. The Nasdaq which has not recorded back to back losses since 6/27 lost .7% today. The S&P 500 lost .5% and the Russell 2000 backed off by .9%. The S&P 500 is stalling near the round 220 number where it came close to hitting on Monday. Looking back it pierced above the round 2100 figure 5 times between April and July before decisively breaking through on 7/8. Although losses were moderate the only one of the major S&P sectors to gain ground Tuesday was the energy group with the XLE gaining a very modest .2%. The utilities group was in the cellar for the second consecutive session with the XLU dropping 1.2% and CLOSING below the round 50 number. The ETF is now lower by 2.7% on the week with 3 session still to go. The energy group was upgraded to overweight at BAC Tuesday and the sector gained ground despite two best of breed names PE and CXO pricing offerings. Retail names have been in focus with many reporting numbers and today was a mixed bag with HD finishing essentially flat, COTY lower by 5% and DKS gained 7% but did reverse after briefly trade above the round 60 number. Tomorrow we will get earnings from AEO LB PLCE TGT and LOW to name a few (URBN was higher after hours at the time of this writing). One consumer name we are keeping a watchful eye on is YUM which has formed a bull flag in conjunction with the very round 90 number, which is stopping its progress. Below is the chart how it appeared in our Friday 8/5 Game Plan. Best in breed peer JACK is having its own issues attempting to break above the round par number.

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