January's retail sales numbers are scheduled to be released tomorrow, so we thought it would be interesting to take a look at American Eagle Outfitters. Retail sales figures are generally released around the middle of the month and are often used as an economic indicator of consumer confidence. As you can see from the chart below, AEOS has been unable to get above the resistance of the 200 DMA - a bearish sign that could suggest that tomorrow's numbers will be worse than expected. We'd expect to see AEOS head lower until we see the price close above the 200 DMA.
We've also added the MACD, which has recently crossed below its trigger line. This signal could also be used by the bears to suggest that AEOS may be heading lower soon.