Market Analysis for Nov 2nd, 2005
With oil prices under pressure and
possibly headed to the mid to low
50's, perhaps the RETAIL SECTOR
is on the verge of a serious uplift
heading into the holiday season?
Purely from a technical perspective,
if the RTH can hurdle resistance
in the 95-95.50 area, then expect
upside acceleration to 97.00, which
represents the 50% recovery level
of the prior downmove, from the
Stratmjp: Aug. high near 104 to the 90 low
in Oct. A sustained hurdle of 97
will be extremely bullish, and will
point to a run at 102-104. At this
juncture, only a reversal of today's
strength that breaks 93.50 will
weaken the improving outlook.
The heaviest weighting of a
component of the RTH is WMT
at 18.8%; the HD at 17.42%, both
of which have very constructive
chart patterns.
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