Getting Spooky at Disney

In my weekend video for Members last Sunday I suggested that this was a "backloaded" week of events and headlines. Hence, stocks have mostly coasted up to this point, including this morning. 

Overall, we have a mixed, meandering bounce going in equities this morning, as equities almost assuredly are waiting on the CPI (inflation reading) tomorrow, followed by a new earnings season kicking off with the big banks reporting Friday. Small caps are lagging, though even they are well off their opening lows. 

That said, I do find the move in Disney of note. You can see, on the DIS daily chart, below, how serious the 200-day moving average (yellow line) has been to the iconic brand and Dow component for months now. Disney is losing its 200-day as I write this, and pending today's close (and the weekly close on Friday) I believe this to be a serious development on the bear side for the stock. 

For a while now, we have discussed the weakness in Starbucks, even Nike at times. But Disney also fits the bill as monstrous consumer discretionary name and a pulse on the state of the American consumer.