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WMT (Wal-Mart) is already out saying that sales were not so hot on Friday. They are also lowering their ytd growth to 0.7% from the 2-4% range they guided to 10 days ago. I have been watching WMT pretty close as it pulled back to support. It will be interesting to see how it trades tomorrow. My best guess is down to 54 in the first hour of trading and then a bounce. Where the bounce goes will say a lot about this market. WMT's problems were the result of competition so it will also be interesting to see if the market rewards or punishes the other retailers.
I expect the market to be down as a whole tomorrow but whatever happens I think tomorrow will set the tone for the week. Maybe I am being too simple but I think a strong Monday will mean a strong week and a weak Monday will lead to weakness. The market has to make up its mind whether momentum has taken hold or if we need to retest some breakout levels.
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