Despite many flight cancellations on the east cost of America due to Hurricane Irene, airlines are rallying hard today across the board. We know that the airlines had been slaughtered even more than the broad market during the summer swoon. So, it is all the more impressive to see them breaking out of a tight pennant today to the upside. When I see a chart breaking higher on bad news after a prior steep downtrend, it usually indicates the sellers are fully exhausted and there is nowhere to go but up into the friendly skies.
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