JNJ Update

Please refer back to my original post on JNJ.  Note the orange bar on the upper right of the model chart there.  That bar is the same length as wave 1.  So the implication is that wave 5 should be about the same as wave 1 if 3 is the extended wave (and it clearly was for JNJ).  This predicted a top for JNJ in the "$105-$106" range.  It peaked at $106.80 and has now fallen about 5% from there to $101.80. 

Here is the high level current chart.  This chart could have been drawn by Walter White because it is definitely Breaking Bad.  The break out of the top rail followed by the rapid break back down into the channel shows that the herd is worried about holding these shares.  What, besides Bernanke's free (but temporary) money (AKA credit) got better for JNJ since 2009?  How can the decimation of the middle class be good for JNJ?  The shares were $46 or $47 back then, now over $100??  Oh, sure, this is normal.  This will last, blah blah blah.

Now check the model in my most recent update that you can find here.  The model was intended to show that there were a few more bucks in the run because wave 4 had just ended and wave 5 had not played out yet.  I filled out the wave count of what transpired since then on the mode below.  An important test is now upon us.  It is always difficult to nail the 5th of 5th of 5th.  If the wave can break back out of the channel per the blue mode then expect one more run of several percent as shown.  But if we stop where we are and then head down then the model below is correct and JNJ has likely finished it entire bull market run that started in 2009.