HD Follows Our Negative Technical Script

Good Tuesday Morning, MPTraders!  May 16, 2023: HD follows Our Negative Technical Script, but the Ongoing Sideways Index Price Pattern Continues Nonetheless... Retail Sales at 8:30 AM ET... Industrial Production at 9:15 AM ET...

HD followed the negative technical setup we discussed yesterday after missing the Street's Revenue Estimates and after providing less-than-stellar guidance. Immediately after earnings were released earlier this AM, HD shares plunged 5.5% to a spike low at 272.72, which we see on my attached 4-Hour and Daily Charts tested critical intermediate-term support that has contained the weakness for the time being-- and must continue to do so to avert triggering powerful new sell signals that to my mind will also warn us that recession is coming sooner than later. 

Conversely, in the (unlikely?) event that HD recovers ALL of its lost territory in reaction to this AM's earnings reaction, strength that hurdles and sustains above 294 is required from a technical perspective to signal that today's knee-jerk negative reaction to earnings established a significant corrective low that concluded the downleg from the 12/13/22 recovery rally high at 347.25... 

Unless and until HD claws its way above 294.00 on a closing basis, my technical bias remains lower-- for a retest of today's low at 272.72 in the hours/days ahead... Last is 281.40, down 2.53%...

Next Up, ES complacency despite HD weakness...