In November, we noted that Autozone $AZO looked bullish as it pushed into new all-time-highs above the $818 high from 2016. Autozone (AZO) Breaks Out into All-Time-Highs; More Upside Ahead. The fact that price was bullish ahead of this week's earnings report showed that the market was anticipating a positive fiscal Q1 2019 report (for period ending Nov. 17, 2018). Indeed, Autozone delivered according to zacks.com: AutoZone, Inc. (AZO - Free Report) has reported adjusted earnings of $13.47 per share in the first quarter of fiscal 2019 (ended Nov 17, 2018), beating the Zacks Consensus Estimate of $12.21. In the prior-year quarter, the figure was $10. The rise in earnings was primarily due to the tax reform, which lowered the effective income tax rate. Revenues improved 2% year over year to $2.6 billion in the reported quarter and it was almost in line with the Zacks Consensus Estimate. Domestic same-store sales (sales of stores open at least for a year) rose 2.7% year over year. The rise in revenues was owing to improved performance in DIY and the company’s commercial growth, which recorded the highest increase since 2015. Gross profit increased to $1.42 billion from $1.37 billion in the prior-year quarter. Operating profit (EBIT) rose to $487.8 million from $468.8 million registered in the first quarter of fiscal 2018. From Zacks.com AZO Daily Chart (click to enlarge) New Highs in a Risk-Averse Market:- While AZO is making new highs, the overall market is still tentative and maybe risk averse. - On one hand, this is a good sign for AZO, because it shows it is very firm-specific-bullish. - However, the overall market aversion could be a drag for AZO.- The $900 market might be the cap for now. - Now if price does start to retreat from $900, we now have a critical support around $800. - If the $800 level does become support, we can be more confident of the market eventually pushing AZO above $900. - Now, if we end up in a major general market correction, then maybe we can allow for some deeper pullback in AZO i.e. back to $750. A hold above $750 would still reflect confirmation of the bullish breakout. and ultimately upside at least back to $900.