CIT Group, Inc. (CIT)

CraigCa (64.19) Submitted: 10/17/07 12:52 PM : Start Price: $38.16 CIT Score: 49.04

Since generating a sell signal in August, the 50-day and 200-day moving averages have shown a strong negative divergence. This is especially true in regards to the S&P500. However, the stock started rallying in August, moving the 10-day moving average above the 50-day moving average, showing a possible trend reversal is in progress. The shares have sold off in October, leading to a negative convergence and possibly showing a reversal of the previous trend. As the 10-day moving average is showing no clear direction, while the 50-day and 200-day moving averages still show a strong negative divergence, I am keeping and reiterating my underperform rating on this stock.

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