IBM reports earnings after the bell today. To follow-up on this blog post, in my long-running series of Big Blue, the stock has performed exceptionally well during the broad market correction.
I expect the usual earnings volatility tonight and tomorrow. However, after the dust settles I am looking to see if the inverse head and shoulders bottom, slanted neckline extended continues to prove true. That translates into, roughly, the $205 area acting as a floor.
Respecting IBM‘s price action since this cyclical bull market in March 2009 has been a piece of the puzzle largely keeping me on the right side of the tape. Even with some weakness after earnings tonight, it would take some serious damage to indicate that Big Blue thinks we are close to a major, bull market top.
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