BA update

Boeing's chart was strongly indicating an imminent bounce as I discussed in my previous post on these shares.  In fact, I pretty much called the exact bottom; the price when I posted was $118.34 and the actual bottom was $117.87.  But now I am going to trot out an alternate count that we should consider given the shape of the bounce.  In short, I think it is likely an a-b-c which topped out at the 50% fib and is likely now tracing out a 3rd wave down.

If this count is wrong then the shares will very quickly go to a higher high than green 2 and in that case I will be expecting a strong rally to the top rail.  BA cannot do this on its own, it will need covering fire from the rest of the market.  But there are many indicators out there right now that make me think such support will not be coming and so this new model, for now, has become my primary count.

A break below the lower rail, especially if accompanied by a gap down, will greatly support this view.