Lululemon athletica (LULU: sentiment, chart, options) shares are down nearly 4.5% this afternoon after Stifel Nicolaus started coverage of the apparel firm with a "hold" rating. Analyst Richard Jaffe said, "We believe lululemon has been able to mitigate some of the inherent risk of an apparel retailer by focusing on technologically advanced, activity-specific clothing and not trend-driven, fashionable apparel." (We're not sure if alleged seaweed content counts as "technologically advanced," but we're willing to work with Jaffe on this one.)

Additionally, the analyst expects earnings-per-share growth of 25% to 40% during the next several years. Despite this bullish comment, Jaffe maintains a "hold" rating because he believes much of the good news for LULU has already been priced into the stock.

In today's session, some of that good news appears to be leaking back out of the shares. The equity is relying on support from its 20-day moving average to contain the worst of today's pullback, which pushed LULU south of its 10-day trendline for the first time since May 6.