Scenario 1: Bearish Rule-4a (red)
1. Consider yourself warned: We got a R-4a retracement rule for the wave ending 6/15/2012 (red)
2. If R-4a is not invalidated, AP will correct down to 31.00 and below (red arrows and labels)
3. To invalidate the bearish R-4a wave, AP must reach 34.45. At 34.45, the R-4a wave becomes R-5a
Scenario 2: Bullish (blue)
1. AP may already be on wave-i of the wave-3 impulsion after breaching the trendline
2. AP is expected to correct to form wave-ii (black)
3. This impulsion will take AP to new highs, but it is prudent to wait for a breach of 50 RSI before buying/adding to your position and going long
4. It's because AP is coming from a Double Three, specifically a flat-X-triangle
5. The fibo projection of the post-pattern action of a double three is usually 161.8% of the previous impulsive wave. 261.8% projection is not uncommon.
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