Intelligeddon marches forward.

In this last post on the coming Intel smackdown, my EW model suspected that the wave 2 was a simple a-b-c bounce off of support.  As chaos would have it, that turned into a time-stalling manueuver in the form of a 5 rail bump ending diagonal which, of course, had a throwover on the 5th wave.  Ending diagonals have been very popular of late so I should have suspected it.

In any case, the chart is now left with a very nasty declining double top as it approaches support once again.  It generally takes the power of a 3rd wave to break down these long standing support lines.  This time it looks like the chart will have the power not of just a 3rd wave but of a 3rd of a 3rd.  In other words, the chart is forming black 3.  Black 3 will have embedded within it a blue 3 which will be below that rising support line.  In fact, the breakdown might even be as a result of a 3rd of a 3rd of a 3rd.   It's easy to see from the chart below that 1 of blue 3 and probably 2 of blue 3 have both finished which means that the chart is working on 3 of blue 3.  Let's call it red 3 because this is where the chart turned red.

Anyone in Intel should run, not walk, from this stock (and probably the broader markets) if Intel confirms this EW count model by breaking down below the red support line.  The EW setup here is just too dangerous on the long side.  When this breaks down, expect short sellers to start throwing wads of cash.  Expect cliff diving to occur as a result.