SII RETAIL: DETERIORATING TECHNICALS IS ABOUT BROKE PEOPLE - NOT JUST AMAZON!
The Longer Term chart of the Dow Jones US Retail Index with its very evident "Head & Shoulders" pattern is sending a clear signal of what may lie ahead. The steady deterioration in US Retail has been occurring for some time but now appears to be running out of time as more retailers close stores. With over 10,000 store location closings planned / announced in 2017 by national retail chains it is now accelerating.
If we look at a shorter term view over the last 18 months we see a critical break of the Intermediate Term trend support. The retailers have placed or are finishing their Thanksgiving / Christmas stocking orders and no doubt the date is beginning to seep into investors hands.
What we need to appreciate is this is more than about Amazon, or the shift to on-line and the shift away from Malls or excess US retail square footage.
It is about the US Consumer being broke! A nation of broke people living on credit and paycheck-to-paycheck is killing US Retail!