Let us recap on the last few weeks.
The S&P appears to be in the first stage of breaking down. We have a triple top on the Monthly, congestion entry on the Weekly and downtrend on the Daily.
Over the next few weeks the market will test the last Hawkeye weekly Pivot high, and then test the last weekly Pivot low at 2030. It’s also forming a weekly wedge profile and when broken – watch out!
Apple, as mentioned last week, broke down. The next test will be the Hawkeye weekly Zones at $76.
BUT here is the big story. Retail is in a bad, bad way. Profits are plunging for Macys, Kohls, Nordstrom, and Gap stores.
PacSun, Aeropostale and Quiksilver have filed for bankruptcy.
Amazon is doing great, but is that because the retail pie is shrinking or have people really changed their buying habits?
A great quote I found on the web:
“A wise man once said, our entire economy is based on folk buying stuff they don’t need, with money they don’t have…on credit. When that is shaken, and folk realize they don’t really need that new pair of shoes, or their 30K mileage car will last a couple more years…We’re toast.”
So what does Hawkeye say? Let’s look at one of the retail Exchange Traded Funds (ETFs) – RTH.
Triple top in congestion and Hawkeye Volume showing two months of white no demand volume.
The price was rejected twice when it tried to break through the Hawkeye stop area. Trend is white and in congestion and three weeks of no demand and the last week selling volume.
A Pivot high, indicated by the magenta arrow, is pushing prices down, with the Hawkeye Volume in downtrend.
We are at major turning points on many sectors. So many opportunities to trade options and ETFs.
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[The magenta arrows are for illustration only and do not form part of the software]