What happened and what is next?Our technical assumptions did not hold.
The SP has broken down below expected levels.
Even assuming that we have completed a first leg up from the recent low below $2 the stock has a last chance to move up aggressively from here with resistance at the $5 range.
Further weakness from here we will likely be looking to a new low well below $2.
This is the technical picture.
Obviously strong results from the current test can change this picture dramatically.
We are cautious at this stage.
AP