Spotting Early Renewed Leadership

I think it's generally a very good idea to keep a list of strong leaders within several industry groups.

When the stock market corrects as it did earlier this year, many of these leaders fall out of favor for a period of time, but it's wise to keep a close eye on when their leadership begins to return. I believe Chipotle Mexican Grill (CMG) is one of those leaders. I see a number of positive signs as the stock tests its February high:

I see the PPO crossing back into positive territory and pointing higher, signaling accelerating bullish momentum. There also appears to be a break above the recent downtrend line just as the AD line (accumulation/distribution line) breaks its downtrend simultaneously. Restaurants & bars ($DJUSRU) just cleared a key price resistance level and CMG broke its downtrend relative to its restaurant peers and the benchmark S&P 500 over the past couple weeks.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.