Very nice looking descending triangle forming on Meritage (MTH chart above). A break of 15.50 spells more trouble.
The bear flag forming on JC Penney (JCP chart above) is compounded in significance due to its formation along a long standing trend line. Its breaking from here does not bode well for the retailers.
Yes I am aware the chairman of the company is buying stock hence the 'news follower bounce'. I would like to see the green trend line broken to the upside and we can start to talk turkey on this one. Until then the tape says down. Besides, I wonder if he bought the stock with his own bread or a low interest company guaranteed, forgivable loan. It wouldn't be the first time if so. Good trading to you all.