Further cementing the many mixed signals in the market would be the spreads we are seeing in consumer-related stocks.
On the one hand, beaten-down high end auction house Sotheby’s is finally staging a strong rally today. The first daily chart, below, indicates as much with price breaking a steep resistance downtrend line for 2014 heretofore.
On the other hand, Ford is still a short setup and weak, once again, today. On the second daily chart, note the bear continuation pattern still in play.
Which one is telling the truth about where consumer discretionary stocks go from here? I do not think anyone knows that answer for sure. So, for now, the setups are on an individual basis, on their own merits with Ford still a short.
Also be on watch to see if Sotheby’s gets rejected this week by its declining 200-day moving average (yellow line on first chart).