Rusty Retail Needs to Get Back on Track

Despite the continued resilience of buyers in the broad market, over the last week or so we have seen two of the better retail players this year get pummeled after earnings. 

Both FIVE and LULU are down sharply off recent highs. LULU, on the weekly chart, below, is obviously finding some overhead supply/interested sellers at prior highs (light blue line). 

While it is certainly true that the market can chug higher with retail as a laggard, as we have seen previously, it is also likely true that retail needs to at least stabilize a bit better into autumn in order for bulls to maintain control of the broader tape. I recognize the AMZN-is-eating-everything-alive argument, but I am still looking to see if FIVE LULU can put in a floor after recent sell-offs. 

Elsewhere, gold miners are bouncing nicely off the jobs number and that $25.67 GDX gap-fill we had previously analyzed. The $28 area above is now an initial spot to see if sellers move in. 

Here, again, it is likely tough to draw too many conclusions before Labor Day. But you can be sure we will need to stay on top of the action if gold takes off again, since I suspect it will not wait around too long for everyone to catch the ride. 

I am going to duck out early today. Enjoy your long weekend!