[AA] breaks back down into the channel.

Alcoa is in a new bull market IMO even while the broader markets are entering a big pullback.  Of course, nothing goes straight up or straight down.  I recently called a peak on Alcoa shares after being asked for a chart update by a reader.  I checked after today's close and I see that key support was lost as modeled.  Look at how the market knows where these invisible support/resistance lines are.  This thing gapped down below that line and then the heavy selling began (chart turning red).

Now that it is back in the channel, the next support level to watch for is the lower parallel line (the "2-4" line).  It will probably find support there and rebound before turning back down and crashing through into a C wave of panic selling.

In my prior post I quickly modeled that 4th wave as a triangle.  Now that the chart is playing out, I took another closer look at it.  It is not a triangle.  This matters.  Generally, the shares will retrace to 61.8 if that is where the 4th wave is.  But if the actual low of the 4th is lower then the shares might dip lower.  So, based on the shape of the coming retracement I will have to try to lay odds on whether it stops at 61.8 or if it goes to the level of the prior 4th.  Either would be valid and I do not have a feeling that one is more important than the other.  All that I do expect to happen is for a 5-3-5 wave pattern to get us there (or an ending diagonal).

Time will tell.  But IMVHO, these shares are a "buy the dip" while the broader markets are "sell the pops".  This is not confirmed yet for the broader markets but it's looking more and more like it will be confirmed.