The retail ETF (RTH) is finally showing a potential of cracking its support. If it can break the $75 level, the bears will get the upper hand on this sector:

A longer-term view shows the very large head & shoulders pattern. A break under recent support could easily get us back into the lower 60s. This is my largest options position.

As for the market in general, the poor /ES has been bouncing like a rubber ball between 890 and 895 for the past couple of hours; the market is trying to figure out to do with itself. I imagine the fireworks are going to get held off until the FOMC announcement tomorrow, so this will probably be a relatively mellow day.

This one crummy little stock – Charming Shoppes – sort of captures the past three months in a nutshell. An equity which:

(1) Deserved to be utterly trashed, and did so;
(2) Yet subsequently exploded hundreds and hundreds of percent higher;
(3) And now is on a precipice