I use Home Depot's stock. HD along with Walmart WMT,
as a proxy to the health of the US consumer economy, and stock market.
The idea here is that these stocks tend to lead the economy in either direction,
representing the actual trend of what the purchasing power of consumers will be
either up or down, 6=9 months out in both discretionary HD or non-discretionary spending. WMT
As the chart in Home Depot shows
there was a very bearish false breakout above 200 in the stock,
prior to the stock market peak in early September
followed by a complete straight down rollover in the stock
on the back of better than expected earnings this month.
My interpretation of the chart
shows that if HD should violate pattern baseline support around 168,
then Home Depot will become yet another a busted stock,
with downside projections to the 125-135 area.
If that were to occur,
it would certainly add further supporting conclusive bearish evidence,
that the US economy, and its stock market are in the process of "rolling over" to the downside
.....a very bearish interpretation indeed.
THE_UNWIND 11/18/19
NEW YORK
as a proxy to the health of the US consumer economy, and stock market.
The idea here is that these stocks tend to lead the economy in either direction,
representing the actual trend of what the purchasing power of consumers will be
either up or down, 6=9 months out in both discretionary HD or non-discretionary spending. WMT
As the chart in Home Depot shows
there was a very bearish false breakout above 200 in the stock,
prior to the stock market peak in early September
followed by a complete straight down rollover in the stock
on the back of better than expected earnings this month.
My interpretation of the chart
shows that if HD should violate pattern baseline support around 168,
then Home Depot will become yet another a busted stock,
with downside projections to the 125-135 area.
If that were to occur,
it would certainly add further supporting conclusive bearish evidence,
that the US economy, and its stock market are in the process of "rolling over" to the downside
.....a very bearish interpretation indeed.
THE_UNWIND 11/18/19
NEW YORK