RY so far doing as expected.

Last time I suggested this stock should stop its bounce at about $57 and then resume its downward trajectory to , at the very least, $44. So far so good. Here are the charts.

RY nov 2010 RY nov 2010 2

The stock , surprisingly, double–topped at a little over $63 , actually making a new all time high. Surprising because it had traded at just over $25 not that long ago. In any case that raises the question which top was the real one, important only to E-wavers. For the next little while (few years) it fortunately does not matter all that much.

After a 5-wave decline, another 5 wave leg MUST follow (to , at the very least, form a-b-c correction). Furthermore, whether a new bull market started at the low or whether the bear market is not yet over, either way it is perfectly normal to have a 61.8% retracement (at about $40). A break of $52 would make this , perhaps in many eyes, farfetched scenario, all the more probable.