Retail Showing Signs Of Life Today Could Have Bigger Implications

The retail stocks are mostly higher today on the back of some solid earnings from American Eagle Outfitters AEO. The retail ETF Retail HOLDRs RTH is fractionally higher while the broader market is lower showing overall strength. Other stocks like Best Buy Co., Inc. BBY are also higher, up nearly 1% on the day. The retail stocks are a major key for any bounce or rally in the markets. This should be noted today. There are pockets of strength in the market even though the broader indexes are lower. This again is showing that we may have a short term bounce on the horizon. Initial Claims being reported tomorrow at 8:30am ET will be key. Last week the markets were shocked to hear that 500,000 people filed for unemployment benefits for the previous week. If that number comes in above 500,000, the markets will have trouble rallying. Any number below 500,000, and the markets have a good chance of shooting higher. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com see charts:http://www.inthemoneystocks.com/userfiles/image/AEO08_25_10.jpg