Denny Crane’s Last Stand

To put the PCLN weakness in perspective, consider the monthly timeframe, below.

Despite being down big today after earnings, the stock is struggling to hold onto the 20-period monthly moving average (orange line).

If it loses that reference point, I expect much more downside in the coming months, perhaps below $900.

Either way, this is an example of another market leader in shambles and categorically not confirming the recent highs in the Nasdaq.

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