Retail Reigning:

Before todays rally, we spoke that certain areas of tech were beginning to act well, and how that was a positive. If we peer at a one week, look back time period at the major S&P sectors one would see room for encouragement. And to my surprise consumer discretionary has been the best behaved, and even more promising is that the only three of the 11 groups that are higher are just the ones growth investors want to see. Sure it is a very small sample size, but it is a start, but needs to follow through. In recent days many big names have turned bullish in Ackman, Williams and DeMark. Is that too much of an optimistic stance? Of course one gets the feeling that the market is washed out, and I believe buyings dips is becoming more acceptable with each passing session. Case in point NKE disappoints and still rises after hours. TWTR cuts guidance Monday and goes higher. Even bad news is being seen as sanguine now. There is a long way before we recoup some of the technical damage, but it feels like a bottoming process continues to develop.

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