26 February 2010
	JSE Retail strength

The JSE general retailers index has been climbing steadily since the March 2009 lows. Recently the index has broken out above a triple top resistance line, created by several peaks which appeared late last year. This takes the index to a 2½ -year high, making general retailers one of the strongest sectors on the entire market over that period. While the feeling of recession is still gripping consumers, it is unusual to see this index performing so well. A possible explanation is that the stock market invariably looks forward and anticipates changes in economic patterns in the future. Perhaps this index is telling us that consumer spending patterns are likely to improve in future months as the economy gradually starts to grow again. Garth Mackenzie of Summit TV's www.traderscorner.co.za