Monday, November 28, 2011

5 Waves Down In SBUX

SBUX is sporting a 5 wave impulsive decline off its recent high, which suggests that lower levels probably around the 200ema will be seen after a countertrend rally is complete.

The advance in the markets today fits the bill for the beginning of the expected bounce.  It could last into early next week.  Only if we see a 5 wave impulse on the hourly chart over the coming days might we change the expectation for lower prices.  At the moment the short term trend is still down despite today's rally.  This is good practice for sitting on your hands.

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