It’ll take more than Monday’s 200-point plunge to wipe the smile off William Shatner’s face. Negative guidance for the next quarter was the proximal cause of the selloff, but it would require a further 200-point loss to suggest that PCLN has entered a bear market. Specifically, the stock would need to exceed July’s 1103 low to generate a bearish ‘impulse leg’ on the weekly chart. Stranger things have happened, but for now we should regard the selloff as a shakedown by the usual sleazeballs (not that poor widows and pensioners are likely to be their victims with the stock priced at $1300 per share). _______ UPDATE (8:06 p.m. ET): My immediate downside target is 1268.20, although the futures struggled on Tuesday to break a midpoint pivot at 1309.20 that is impeding the path to that ‘hidden’ — and potentially tradable — support. Bulls would gain the advantage on a push today exceeding 1391.00.
