Markets ended Tuesday’s session near the UNCH mark and the Russell 2000 lagged badly falling .8%. The Nasdaq should be given the MVP today as it lost .1%, but has nicely consolidated the prior 2 days combined gains of 2%. Retail was in focus Tuesday as many names in the group reported earnings. HD which many viewed its reaction as a surprise, but a look on the chart showed it was pretty weak coming into the report. Notice the wide and loose trade, hallmark bearish characteristics and bearish shooting star candle the week ending 5/19 at all time highs, and then bearish engulfing weeks ending 6/23 and 7/21 which fell 3.4 and 4.1% respectively (all three were accompanied by the strongest weekly volume in ’17 thus far). That being said it is now off just 7% from recent highs, while peer LOW is double that down 14% and sliced its 200 day SMA Tuesday. Others may not have been unanticipated with AAP recording its third straight negative reaction falling 20.3% today after 5.4% on 5/24 and now sits 51% off most recent 52 week highs (2/21 produced a fractional loss). URBN is now lower by 59% from its own most recent 52 week highs and has lost value 27 of 39 weeks since the week ending 11/18/16. DKS is looking to register its third weekly double digit decline this week down 21% this week so far, this following last weeks 10.5% haircut. We think you get the picture. Looking at a potential bright spot, below is the chart of RHT and how it appeared in our Thursday 7/20 Game Plan. It continues to flirt with the very round par figure since touching the number the week ending 6/23, and 4 of the last 8 traded above 100 intraweek demonstrating the importance of a CLOSE above.
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