Our Charts of the Day video for Thursday covers Automatic Data Processing, Inc. (ADP), EOG Resources, Inc. (EOG), The Home Depot, Inc. (HD), and Booking Holdings Inc. (BKNG).
We're starting to see potential tops forming across charts again. Either charts that seemingly have completed 5 waves up off the December low for a 5th wave, or other charts turning down from key resistance for possible corrective bounces.
ADP had a decent down move on Wednesday. Going into earnings, and they reported Thursday morning, the stock had a very clean-looking 5 wave structure to the upside off the December low. This turn down increases the probabilities of the 5th wave being complete.
Ultimately, it will need a break of the prior low at 128 as the next level of confirmation that a primary circle wave 4 lower has started.
EOG had a very clean 3-wave move up in the (B) wave off the December low. It now appears to be near the bottom of the first of 5 waves of a (C) wave move lower, which, after bouncing in the second wave, could set up a short for a move down towards 70.
HD is now beginning to come back down off its (B) wave top, and like EOG could be setting up for a possible short after its next bounce, as the larger (C) wave points to around 150.
Also this week, we look at the circle C wave structure lower in BKNG.