EA, EEM, RACE, SQ updates 08/01

EA: Like most tech stocks fell out of bed last week. Counts best as having completed major-5 (Primary III) both on the daily and monthly chart. May do a gap fill to about $141 aka bounce) at some point first before heading lower.

EA DAILY

Bigger picture-wise I am looking for Primary-IV to around $100, which is where major-4 (based on the weekly-chart’s EWT count) bottomed as well. Note the daily and weekly chart’s EWT counts are different but point eventually to the same: a larger top being in place. Note the negative divergences that build going into last week. Those are the warning signs I always look for.

EA Monthly

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EEM: Looks like intermediate-iv bottomed and –v to new highs at around $54 should be underway. A break below $42 invalidates this count and strongly suggests price topped at the beginning of the year for a larger C-wave and I would then be looking for $18 again eventually…

EEM

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RACE: Now may not be a good time to own a Ferrari anymore… I mean Ferrari stocks 😉 It cratered on earnings today after having completed a multi-month diagonal pattern off the major-4 low. Of course it can always be a leading diagonal instead of an ending, meaning price will go higher eventually for a wave-iii, but given the choppy advance has taken all of this year so far I don’t find it logical that a possible wave-5 will become a multi-year event, while all of the advance since the 2016 LOW -the meat of the rally- has taken 2.5 years.

race daily

Thus I view RACE as having topped for Primary-I and –II should eventually reach $75-$90. Note the negative divergences on the monthly TIs: RSI5, A.I. and Money Flow. Not a good sign, and these divergences are now kicking in. Support is at $100, from which a bounce back to $120-$130 can be expected IMHO before the next leg down. Note, the EWT count on the daily is different from the one shown on the monthly, simple because I use different criteria between charts to assess the waves.

race monthly

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SQ: Is to report earnings this afternoon and there are two trains of thought. Either price will go lower for wave-4, or higher for wave-3 of –iv. Looking at the monthly chart the whole advance this year looks much more choppy, with long  upper wigs (selling) on three monthly candles out of the past 5… Looks more like a diagonal. But, price is still firmly in an uptrend albeit negative divergences is building on the RSI5 and MFI (just like RACE…). Thus, I find the weight of the evidence not overwhelmingly Bullish.

sq daily

sq monthly