One Step Forward, Two Steps Back

While January’s retail sales saw a modest rebound (+0.2% MoM), December’s were revised downward from -1.2% to -1.6%.

Futures bumped slightly higher, presumably because a slowing economy protects the market from Fed tightening.  In reality, it was driven by continuing VIX algo-signalling.

With key DJIA component Boeing off sharply in the pre-market, today could be a tumultuous day.

Obviously, BA is reacting to the second crash of its key 737 Max 8.  But, its chart already argued for a downturn before the latest tragedy.

First order of business will be to close the gap at 369ish.  If it can’t hold at 369, look for it to test the SMA200, the .618, or potentially the .786 Fib well ahead of schedule.

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