RIMM Update

Yesterday late n the day I posted, "Any RIMM Long Might Want to Lock in Some Profits", RIMM is down about 1.7% today thus far.

Here's what RIMM is looking like so far today, it's pretty simple in my view.

 RIMM caught out attention because of the leading positive divergence on this 60 min chart as it forms what looks like a pretty decent size base, this is where the market bifurcation is coming from, the beaten up stocks are looking better and the ones that have been the performers are looking worse, my guess is that people are starting to feel like the market is a bubble with P/E's 50% higher than QE1, I think they'd rather bargain basement shop than chase performance just in case the bubble goes POP!

The bottom line here is I doubt RIMM breaks out from an already extended position, I think it will need to at least pullback if it's even done moving in a base-like manner.

 Yesterday's warnng was based on this chart and the negative divergence, today it's a bit lateral, but I think in the days and week or two ahead it is more likely to pullback a bit.

This 15 min chart is a perfect illustration of that, it was positive at the bottom and saw distribution as it moved higher, it is likely it needs to pullback, consolidate and get positive again before it's ready to break out much higher. I'd personally take profits and look for the pullback.