WalMart is a good consumer barometer, as it reflects consumer
spending on a broad based
level.
If you look at the chart below,
WalMart formed a 5 year triangular pattern and recently broke
this 5 year
pattern to the downside. This is not a good sign relative to the direction
and amount
of consumer spending.
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In our next two charts, you can
see that WalMart was not the only one to break support.
The first chart below, shows the
S&P 500 and how it broke its rising Wedge pattern to the
downside.
Like WalMart, this was a serious
breach of support. The S&P has been rising in recent days,
but it
is just now reaching the Major Resistance offered by the bottom side of its
rising wedge.
Will it stop here, or move up and through it this week is the
bit question.
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The Dow Jones Industrial Average
is facing the same condition as the S&P above with a rising wedge
that
was penetrated to the downside.
Like the S&P, the DOW is now
below its wedge's resistance line and facing a formidable test this
week.
These 3 breach of support
conditions are Negative for the markets unless they can rise above the
Major
resistance they are facing and do so on good volume.
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