XLY - Lululemon: Soft Guidance Pressures Shares Technical Damage Done
2024-03-26 22:02:22 ET
Summary
- Consumer stocks are wavering despite a healthy labor market and real wage gains.
- Lululemon's earnings report included a tepid outlook, causing one of the stock's worst post-earnings performances, and implied volatility remains elevated.
- Lululemon's stock has broken down in the short run, with support in the mid-$300s.
- Following a false breakout, I highlight key technical points on the chart to monitor as the bulls and bears duke it out.
Questions arise concerning the strength of the consumer. Despite a healthy labor with real wage gains, early-year indicators suggest that purse strings are being attended to more carefully. ...
Lululemon: Soft Guidance Pressures Shares, Technical Damage Done