I think we will see another trend low in the Q's over the next month.

In the screenshot above, you can see 4 waves down from the $55 top on Halloween '07. Wave4 has formed as a triangle and price is on the verge of breaking out to the downside. A measured target is between $39.50 and $40.25, where Wave5 would equal Wave1.

After this dip, MACD-divergence may form, which would precede a nice rally into the summer. I might consider some tech names if the Q's drop as I am anticipating.

No comments: