The stairstep decline in Research in Motion (RIMM) from last week’s high at 72.08 into this morning’s low at 66.45 has the right look of a completed correction of the prior upleg from 61.50. If my work proves accurate, then RIMM should be "in the turn"” period now, transitioning into another upleg that will revisit 72 on the way to 74-75.

At this juncture, however, failure to sustain today’s lows followed by a break of 66.00 will invalidate the correction and instead indicate that last week’s earnings high was a Bull Trap ahead of the resumption of intermediate-term weakness that projects to 60.00 next. For the time being, I am giving the bullish scenario the benefit of the doubt.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.