TJX Companies (TJX) is under pressure today despite reporting better-than-expected second-quarter results. The retailer posted 4% comparable sales growth and raised its full-year profit outlook, but investors focused instead on slower growth at its key Marmaxx division and softer-than-expected third-quarter guidance.

The stock has fallen more than 4% and broken below several important moving averages, including its long-term 233-day EMA. Momentum has turned decidedly bearish, with the PPO falling below its signal line and negative momentum accelerating.

The ADX is also beginning to strengthen, while -DI has surged well above +DI, suggesting sellers are firmly in control.

The next area of potential support is near $141–$142. If that level fails, the chart leaves room for a move toward the $137 area. A recovery back above the $150 area would weaken the bearish setup.

Today is a good reminder that strong earnings don’t always equal a rising stock. The market trades expectations, and in TJX’s case, investors appear more concerned about what may be coming next than the quarter that just ended.

Wishing you the best,

Wendy