Big Cat Underwater

After a slew of earnings reports last evening, we have some sizable gaps across in the board in individual names. CAKE LUV SNDK UA are impressively higher, for example, while AXP DFS take to the downside. 

In addition, the lingering issue for global industrial Caterpillar, seen below on the monthly chart, continues to be that pesky $78 level, stretching back nearly a decade. It may be an issue specific to the big CAT itself as a firm. But the stock has been seen as a global bellwether of industrial activity for a while now.

As you can see, the $78 level is significant, with multiple touches of it for a good while now. I suppose it can continue to remain the case that the stock churns around this level. But a breakdown would be noteworthy and likely forceful at this point, with all of the energy built up here. 

It will be interesting to see if other industrials, not nearly as global as CAT, can work well to the upside even if Caterpillar breaks down. ZBRA is a name I am currently long inside Market Chess Subscription Services, for example, and is a good litmus test to see if CAT's weakness is going to be more meaningful and widespread, or contained.