Honeywell International Inc. (HON: sentiment, chart, options) has plunged nearly 4% today, after receiving a downgrade from Argus Research. Specifically, the brokerage firm lowered its recommendation from "buy" to "hold."

The stock has rallied 32% from reaching a multi-year low of $23.24 on Nov 21. Furthermore, HON has outpaced the S&P 500 Index (SPX) by more than 20% during the past 20 trading sessions.

Overall, analysts and brokerage firms are optimistically aligned. The security's Schaeffer's put/call open interest ratio (SOIR) is docked at 0.68, meaning calls outnumber puts among short-term options. Additionally, during the past 10 trading days on International Securities Exchange (ISE), calls bought to open have been more than 10 times more popular than their bearish counterparts.

Analysts are also smitten with the shares. Zacks lists 9 "buy" or better ratings, compared to just 3 "hold" or worse recommendations.

If the stock continues to slip, its recent rally could be over, as the optimistic Street becomes bearish. Followers of HON should keep an eye on its progress toward the 30 level. If this region is breached, it could mean more downward pressure for the equity.