[WDC] update

After calling nearly the exact top on WDC in my first post ever on it, the shares have now collapsed down to $78.38from the then-price of $105.63.  Not a bad read of the waves if I do say so myself.  So what's next? 

Well, in the previous post I wrote provided a few of the most likely probable models, one of which was the blue model in the chart from that link.  The blue model basically said that the 5 numbered waves down constituted a motive move and thus we should expect a retracement to the level of the prior 4th which as you can see was at about $102.  That is where the blue bounce came from, not gut feel.

Note that the blue line, upon hitting the target price, was expected to turn down hard.  Again, this is not gut feel but rather an acknowledgement that if wave 1 down was complete and wave 2 was subsequently completed at $102 then the next move according to EW would be wave 3 (OR C!!) down and 3rd waves are generally the most powerful.



What the herd actually did turns out to be very close to that blue path indeed.  But I also wanted to try to explain that falling wedge in terms of CWT so I renumbered per below.  As you probably know, there can be more than one valid count to a given wave.  So in this case blue 2 was a flat correction with count 3-3-5.









WDC should soon be bottoming into red 5 at which time a very important decision is going to have to be made and that is whether this turns into 5 large waves down or whether this was just a 3 wave retracement.

By the way, that lower support line is new and here's where it came from.  So it's possible that this now reverses upward and hits the top rail again which would be a very tidy double from here.  But if this instead turns into 5 wave down instead of the current 3 then EWI's crash model is more likely at play here.