El: Reverse head and shoulders? No way! There is no head and shoulders pattern in CPQ's chart period. BTW, a reverse head and shoulders is a bullish pattern, not a reason for concern.
I'll give you a reason to be concerned. Read my post 38004. Yesterday was the third day of distribution, or professional selling, in seven sessions. The market, with the Nasdaq out in front, has been rallying since Oct. 8. For most of that time, the Nas has been able to move higher on higher volume. The only time it paused for a rest - Nov. 11-13 - volume tapered off. That was constructive. Now it's just the opposite. When the Nas has risen, it's been on lower volume, and when it's fallen, it's been on higher volume. This is not constructive.
What does this mean for CPQ? Well, when the market topped at the end of July, CPQ kept going up for almost another month before it finally succumbed to the macro pressure. CPQ is very strong right now - stronger than last summer. Volume yesterday was magnificent! I think we will hold our own here in spite of Herb, IBD (oh yeah, Dell's Uncle Bill is at it again) and Brazil, but it's not going to be easy.
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