SC, perhaps a buy now

sc july 2010

As indicated in previous comments Shoppers could be a buy soon. We are essentially there on a number of indicators. First we are precisely under the apex of the triangle, assuming there is one. Secondly both the RSI and MACD are not confirming the new lows. Thirdly at first blush the 5th wave down looks a lot like a wedge, or in EW parlance, a diagonal, a pretty reliable sign the market has gone too far too fast. What has not yet happened is a drop to the 50% level which is around $29. Given the upside potential being a little early should probable be favored over missing the boat entirely. As always, entirely your call.