CIT Group Inc. (NYSE:CIT)

Q: Chip, I read your press release today on CIT. Any thoughts on the recent downturn and why? Thanks A: Thanks for your email, Our system is purely technical and it looks like the lower highs made on 4/17 and then on 6/1 indicate CIT may be heading lower.  We downtrended it on 6/29 at $2.32 but probably could have done so a bit sooner after it dipped below that 50-day support line.  System likely needed some additional downward momentum to confirm downtrend since the prior time it fell below that 50-day average the stock rallied a few days later.  The November low was $1.65 and the March low was right around $1.69 so keep an eye on those levels.  The company is set to announce Q2 results on July 23rd which may also be a catalyst.

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