U.S. retail sales were unexpectedly flat in December, confirming that the overall economy is on a slower growth path than most economists had believed. November’s print was a strong 0.6% increase. Futures are flat as the jobs and inflation data also due out this week are viewed as more important.
Note that RSI for both SPX and ES has been making lower highs, diverging from the higher highs in the indices themselves.
DJIA has officially tagged its 1.1618 Fibonacci extension.
VX remains below the TL and SMA200, propping up stocks for now.
Our model continues to suggest a significant drop is imminent.
Leave a Reply
You must be logged in to post a comment.