INTC Carving Out Massive Top

Intel Corporation (INTC) has pressed to a new 13-month low at 20.50 today, which amounts to a 30% decline since May.

Yesterday, INTC closed beneath its 26-month support line and is vulnerable to downside continuation towards a test of its Sept 2011 low at 19.16

Although INTC is beginning to exhibit positive momentum divergences that often emerge prior to a counter-trend recovery rally, the price action remains weak and points to 20.20/00 next

Only a rally that hurdles and sustains above 21.10/20 will begin to neutralize the extreme near-term bearish outlook, but not the dominant medium-term bear trend.