Retail Produces Worst Numbers since 2009

Weekend May 14, 2016

Chocolate Bar or Silver Bar?

47% Don't have $400.

Of Two Minds on Free Trade, - Not

 

Apple This Chart Says it All

Apple is is near every stock index save the Utilities and Transports. We have noted that a drop to new lows would

be a harbinger of lower prices and well here it is. This too the NASD down as well.

SPX Stock over their 50 day MA demonstrates the Ten Week Cycle

The cycle tool demonstrates a clear ten week cycle at work here. The dynamic of the current emerging

downtrend of the new ten week cycle is being felt across all indexes.

The Ten Week Cycle in the SOX index

The cycle is not as precise in the SOX as in the broader indexes but the same pattern is evident.

And there is always a fundamental event to confirm the technicals.

Macys

Macy's reported the worst quarter since 2009, and is is the case for most major retailers. This  is a combination of the move to Amazon

and the just plain reluctance to spend, see our lead article noting that 47% of Americans do not have $400 in cash. In short, the economy is much much worse

than most believe.

XRT

The XRT ETF is collapsing with lower highs and lower lows. Retail is the lifeblood of the economy, are people spending in stores, here the answer is NO.

I am off to UNT Denton for the graduation of the grand daughter. Back late Saturday, another update on Sunday but frankly this is it. The markets are turning down as the ten week cycle now to the downside strengthens. Every day another fundamental event emerges confirming the down trend.