Target experienced a drop in sales during the second quarter due to inflation concerns among shoppers and a negative reaction to its Pride Month merchandise. The retailer expects that high interest rates and higher food prices will continue to strain customers, leading to a decline in sales for the remainder of the year. As a result, Target has lowered its profit outlook for the year. Despite the lowered forecast, Target's profit for the quarter exceeded expectations, thanks to a reduction in inventory and cautious spending by customers.

CEO Brian Cornell attributes the decline in sales to higher prices for essential items, which are consuming a larger portion of customers' paychecks. Additionally, some customers have redirected their spending towards travel and other activities outside of the home. The backlash over the Pride Month collection also negatively impacted sales. Some items were removed due to confrontations between customers and employees, as well as incidents of merchandise being thrown on the floor. Target has pledged to be more cautious with its partnerships in the future while still celebrating heritage moments.

Target's second-quarter sales decline is expected to draw attention as other major retailers report their financial results, including Walmart. Despite the challenges, Target's shares rose by nearly 6% in early morning trading on Wednesday.

Despite recent concerns about a potential stock market crash, the charts suggest that a crash may not be imminent. The volatility index for the S&P 500, known as the VIX, is currently trading near its lowest levels since the start of 2020. This indicates that investors are not expecting a large move in the coming weeks.

Another chart to consider is the put-to-call ratio for the NASDAQ 100. A ratio above one suggests that investors are buying more put options, indicating negative sentiment and a possible hedge against a crash. The current ratio is 1.61, which does show some negative sentiment, but it has been higher before.

It's also important to note that there are areas of support in the market that could prevent a full-on crash. The S&P 500 has rallied 25% from its October lows and is trading at over 22 times earnings. While there may be pressure on corporate profits, investors may still be hesitant to completely abandon stocks.

Overall, while concerns about a stock market crash exist, the charts suggest that a crash may not be immediately imminent. It's important for investors to remain cautious and monitor market conditions closely.

Sources:

- Vincent Deluard warns of potential drop in stocks and home prices, slowdown in US economy - Business Insider

- Is a Stock Market Crash Looming? What the Charts Say - The Motley Fool