Luxury Turnaround:
It is often said that the wealthy can withstand a recession much better than the middle class, and it states the obvious. Technicians like to view this possibility through the lens of PRICE action. If we look at different regions Europe overall is acting well. The financials over there via the EUFN have now broken above a WEEKLY cup base pivot of 20.36 as it enjoys its first 6-week win streak in one year (the truth is they have been outperforming US names for quite some time). The chart below of LVMUY has been the focus in the retail arena for European luxury and although it is still lower by 20% from its most recent 52-week highs it may be making a turnaround. After hitting a stone wall at the very round 200 number the week ending 7/14 (the very next week recorded a doji candle which would also be a bearish WEEKLY harami cross) it declined 10 of the next 15 weeks almost dropping in a straight line. It is higher just 3 of the last 6 weeks, but each advancer CLOSED near highs for the WEEKLY range and rose forcefully. The capitulation week came the week ending 10/13 which fell more than 10% in the largest WEEKLY volume in 20 months. It seems like a new regime change has taken over and that a bottom could be in.