The current snapshot below shows that we have started down from the top of the downsloping line. What is NOT a for sure thing is whether it will turn into a HT or not. If it does then it would appear that the downside of the current pullback will be limited. I mean, it won't bee good or anything. Down to $22 from current of $38 is nothing to be happy about, but it could be a lot worse and it will be unless that HT does end up forming.
Below is the current snapshot. If this is going to be an HT then it should vee bounce in the $33-$35 range ending up with just 3 waves down. But if the next wave down has a big gap down in it then it is probably not part of an internal triangle wave. In that case it will turn out to be motive and that would not bode well for any stocks. LUV is considered one of the better managed airlines and thus a proxy for all transportation stocks. As you can see, transpo stocks (as measured by LUV as well as the entire DJT) led the sell off beginning months before the DJIA and $COMPX.
The inevitable effects of historic levels of debt creation are about to unfold right in front of us.
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