L, Loews

l may 2 2015 bl may 2 2015 s

Here is another example of an expanding diagonal. This is probable wave 1 of C, so there is a lot more to go (however, it could be just a first a-b-c shown in red). Before anything else the stock should find its way back up to about $45 , usually in rather violent bursts. These patterns occur when the market takes the stock too far, too fast.  The market action can best be compared to a busload of elderly tourists visiting the Grand Canyon. Curiosity will keep them tiptoeing ever closer to the edge un till one falls over the side causing a frantic retracement. These patterns are highly accurate in terms of their predictive value!