It took a bit longer than expected.

But FedEx (FDX) finally crumbled.

As we noted on Dec. 11, “Not only is it struggling at triple-top resistance, it’s overbought on RSI, MACD, and Williams’ %R. From current prices, we believe it could pull back to its 200-day moving average of around $240. We also have to consider there haven’t been any upgrades on FDX, price hikes, deals, or any new substantial news events that are driving it higher.”

At the time, FDX traded at around $272. And while it would push even higher on no real news, it finally crumbled as expected.  Last trading at $246.25, the stock plummeted $33 after the company missed on revenues, and cut its outlook short.

FDX Q2 EPS of $3.99 fell short of estimates for $4.19. And while the company did maintain its full-year EPS midpoint guidance of $17.75, sales are expected to decline. The prior forecast called for flat sales in fiscal 2024, as compared with 2023.

This is another key reason why it pays to never follow the herd into anything. A lot of investors piled in simply because of the momentum of the herd. And unfortunately, many of them learned a very bad lesson with today’s gap down.