Friday, June 19, 2009
5 Waves Down In RIMM
With RIMM falling in 5 waves from its recent high, we can draw a couple of conclusions: 1) the market correction is likely not over, and 2) we may see more bounce on Monday.
RIMM would likely rise early next week in a b wave, which should be concurrent with a continuing upward correction in the Qs. However, another wave down should ensue, which will in all likelihood mark the end of this market correction.
A number of other Nasdaq 100 stocks are sporting similar patterns, so there is ample support for this interpretation. The Qs may move up to 36.55 to 36.80 before rolling over again, which would give us a measured move target of 33.67 to 34.77 for the end of the correction. Or course, we will need to see how it unfolds.
If this correction extends beyond next Friday, the likely bottom would be around July 15, which was last year's bottom after the June correction began. I don't think it will last that long, however.
Posted by R. Craig Pritchard at 5:10 PM