At this juncture, I think one of the most important charts to keep an eye on is RLX (Retail). In early October, it closed above the previous all time high set in July of 2005 (489.34). That support level has been tested no less than six time since. There is a definite hesitancy in pushing this one higher and I would consider any close below 489 to signal the beginning of the end of this bull market, plain and simple. After all, the mantra of the past four years has been "consumer resiliency". If that optimism fades, it will appear in this chart before it does anywhere else. Watch it. Resistance is now 10 DMA at 495, so the noose is tightening.
This entry was posted
on Saturday, October 21, 2006 at 8:27 PM.
