Pokéworks in, Chipotle Out

On the back of poor February comps, CMG breached the widely-watched $500 level this morning. 

Headed into an action-packed afternoon with the Fed and various associated announcements and events, we are stalking a short entry with Chipotle. In recent months, CMG has done its job of grinding higher and defying call for an imminent plunge to $400 or lower. 

However, the highlighted rising channel pattern has now been broken, and the stock remans in an overarching downtrend with declining longer-term moving averages well above price. 

Beyond that, the next trigger may very well be if CMG loses its 50-day moving average, just below, which likely serves as buyers' last stand to defend against this latest sell-off. 

While the bull argument is essentially that the E. coli illnesses and news are already priced into the stock, in reality that may just serve as an excuse for the market to take CMG back down to reality--A reality where it must compete against an increasingly tough fast casual field after Chipotle may have already reached a degree of saturation.