In the PCLN backlink I called a peak near 1400 and expected a decline to about 950. Here is the model from that post.
The real time zoomed in snapshot shows that it got down to about 990 before bouncing hard into a deep vee 2nd. But I think that is just the beginning. Go for the Jan 2017s to be safe.
Even if the markets are still in a strong bull per Avi, the next move for PCLN is most likely down to a minimum of the 38.2 around 850 but more likely a retracement to the prior 4th in the 530-560 range. If ever you had a mind to buy puts on PCLN, this the chart setup you have been looking for because we should be entering wave 3 down pretty quick now. Once the economic numbers verify that we are in recession, ALL consumer stocks will take a hit. Note that the airlines are the leading indicators and the airlines are getting pounded.
Do you remember my first post ever on LUV? Below is the chart model I provided there side by side with current snapshot. I correctly modeled that peak as W3 so then we should expect 4 and then 5. Given that I modeled the 5th of 5 as playing out, I suspected that it could also be a failed 5th resulting in a declining double top or, as I like to call it, owl ears.
This in fact is just what happened. I think LUV is tracing out 3 of 1 right now. Time will tell if this model continues to be correct but the point of mentioning LUV here is that my model for LUV has been spot on so far and if Luv continues to plummet per my original model, how can PCLN stay buoyant? It can't and so it won't.
LUV has not put in 5 waves down yet but soon enough I reckon it will.
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