by Chris Kimble
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CLICK ON CHART TO ENLARGE Three popular low cost retailers look to have created bearish wedges and are breaking support. Who and what do we blame this on? If low cost retail is starting to show fractional weakness, what about the other end of the retail world? What are the wealthy doing???
CLICK ON CHART TO ENLARGE Sotheby's can be viewed as a "wealth indicator." The above chart reflects that several times over the past 14-years, the S&P 500 was near a high, when Sotheby's was near resistance level (1). I'm not really into the blame game! I believe price is the only thing that pays and its worth keeping a close eye on retail at the high and low cost ends of the spectrum. The majority of GDP is driven by the consumer, consumption. An upside breakout by Sotheby's and the low cost retails could be a good sign for the economy. Maybe better weather will help out! |
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