Well, it’s acting the way it usually did except for the brief period earlier this year when it ran all the way up to $644.
From a technical perspective, I had a hard time seeing it coming all the way back down to the $530 level without a bunch of bad news. I guess the macroeconomic factors with the Euro along with this current dead period as far as any major catalysts equates to this all too familiar pullback.
$550 which I thought was solid support was sliced through like a hot knife through butter where it managed to fill yet another gap. Interestingly, the bad BATS trade a couple of months ago was around this $526-536 area. The next lower gap is somewhere in the $475-480 range which really isn’t too far from here. Can it get there? Well, the current action is living proof that it can come back down. Plus back in 2007, the stock went from $70’s all the way to $199 by December 2007. Then it came all the way back down after the global economic crisis in 2008 when it hit $82 in November. So at this juncture, it would not surprise me if the stock manages to re-test that $480 area. But not before it tests $515. Yes, it will be one heck of a multiple compression and totally illogical… but this market is generally whacked to begin with.