CREE is forming what appears to be the handle of an inverted cup with handle after annoucing earnings that the markets were clearly not satisfied with three days ago. Here is the chart:
CREE is in a clear down trend with the 50 day SMA below the 200 day SMA and this is now CREE's second or third earnings disappoint after being a regular in the IBD 100 for most of 2009 and early 2010. The trigger on this is a break of support ($47.80) on volume with a stop loss above the handle ($50.75). I would advise taking profits into momentum in pieces on the way down and getting out completely into an extreme breadth reading on the T2106 and/or T2108.
Good luck and good trading!