CREE Correction Complete - Market Analysis for Aug 24th, 2011

My big-picture analysis in Cree Inc. (CREE) argues strongly that its August double low at 26.36 and 27.78 represents the conclusion of the major correction off the April 2011 high at 83.38. It also marks the start of a base-building formation that should propel the stock back up to initial resistance at 35.00-37.50 in the upcoming weeks.

At this juncture, only a decline that breaks the Aug 22 low at 27.78 will compromise the analysis.