During Friday's "Mad Money" program, Jim Cramer said he would be watching earnings from Ross Stores (ROST) on Tuesday. He said he expects ROST to be the only bright spot among a number of companies reporting that day. Let's check out the charts of ROST.
In this daily bar chart of the Trifecta Stocks holding, below, we can see the uptrend in the share price of ROST and the recent quick decline. Prices plunged below the cresting 50-day moving average line and tested the rising 200-day moving average line. The trading volume increased on the recent decline and the On-Balance-Volume (OBV) line made a lower high in February than January, even though prices made a higher high. This bearish divergence foreshadowed weaker prices. The Moving Average Convergence Divergence (MACD) oscillator made a double top in January and February and just gave an outright sell signal as it moved below the zero-line.