Fossil Inc (FOSL +$1.39 or +2.64% to $54.148) rallied for a solid gain today with above average volume for its second best close after recent signs of distribution. An upward trendline defines initial support to watch after it has been repeatedly noted as "extended from any sound base." It was last shown in the FSU section with an annotated graph on 8/11/10 under the headline, "Breakaway Gap On More Than Triple Average Volume", right after it was featured in yellow in the 8/10/10 mid-day report (read here).

The M criteria argues that 3 out of 4 stocks will follow the direction of the major averages, so widespread leadership helps its chances to continue rallying.  As before, it faces no resistance due to overhead supply. Sales revenues and earnings increases showed impressive acceleration in the 3 latest quarters (Dec '09, Mar and Jun '10) following a streak of 4 negative comparisons versus the year ago period. It is a promising looking outlier while a lack of leadership in the Retail/Wholesale - Jewelry group (L criteria) has been noted.