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Macy’s is a top gainer in the S&P 500 Index today.  Shares are up over 4.5% at mid day and have been well bid since the open.  This powerful move is driving M well past the March peak leaving behind layers of support in the process.  We believe the bottoming pattern that began shortly after the stock’s Jan. 10th flush(poor holiday sales) is giving way to a fresh rally leg.

Highlights:  A divergent MACD low has been forming since late January. 

M sports a fairly high short interest ratio.  SIR/4.9=Upside fuel.

M is less than $1.00 away from its best close since the January 10th flush.  The stock fell over 17% that day, its worst loss since May 11, 2017.

Solid support is in place between $25.60(Feb. 26 high/Q4 earnings) and the March peak($25.00).  On the downside, a close back below $24.00 would violate the April lows sending a clear warning sign that more basing will be needed before shares can mount a sustainable recovery.

Macy’s currently sports a dividend yield of 6%.

We are now long M in some managed accounts.