The market's rebounding today, though it's still not enough to offset heavy losses from earlier this week. Moreover, it's not apt to stop the bearuish montum. We've identified Expedia, Inc. (NASDAQ:EXPE), Temple-Inland, Inc. (NYSE:TIN), and EDAP TMS S.A. (NASDAQ:EDAP) as some of the best ways to tap into the downward momentum. Here's a little mote detail.

I actually issued a bearish view for Temple-Inland, Inc. (NYSE:TIN) back on September 23rd, and it's literally taken this long to come to fruition. But yes, I'm still looking for the stock to move much lower before another leg higher.

A couple of clues are in place here, the biggest of which is the ease of the pullbacks, and the struggle with the rebounds. Moreover, the dips Temple-Inland has made have been on increasing volume. Now, after TIN made a lower high a couple of weeks ago and is knocking on the door of the first of two support levels. As for where it could end up if both support lines break, I still say $11.15 is a key support area.

The looming demise of Temple-Inland may still be a little obscured on a daily chart. Check out a weekly chart though - the stall since August is turning into a shift from the prior bullish momentum.


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Don't chalk up today's nasty pullback from Expedia, Inc. (NASDAQ:EXPE) as just a little volatility within a longer-term uptrend. The last three days - today in particular - suggest a major shift in momentum is here.

Though it's technically been undone since then, earlier today we saw what's called an engulfing day for shares of Expedia, Inc. The 'engulfing' just means that today's open and today's close (which still isn't final, obviously) are above and below yesterday's high and low. And, clearly it's bearish. I hesitate to call it a true 'bearish engulfing' bar, as that's something very specific that (1) occurs at peaks, and (2) is preceded by a bullish bar. Nevertheless, the spirit of a bearish engulfing bar is indeed evident today. That being said, we have a pretty good engulfing bar on a weekly chart, so there.

The other tip-off is the strength of today's selling volume - it's the most volume we've seen from Expedia since September of 2007, which also happened to occur at a peak and bearish pivot? Does history repeat itself? Knowing how many volume spikes have also been trend pivots of late as profit-takers get skittish, yeah, I'd say EXPE is headed lower.

As for a target, there's a major Fibonacci retracement lines at $19.20. Let's start there.

The last time we looked at EDAP TMS S.A. (NASDAQ:EDAP) on October 21st, we only had some tentative action to talk about. The stock was finding strong support around $3.60, but a falling resistance line was going to squeeze the chart out of a wedge, one way or another.

Well, we finally saw one side of the boundary break. Yesterday's low of $3.13 for EDAP TMS S.A. shares was the result of a pretty decisive move under support levels. Yes, it may have been more market-related than company-related, but it really didn't matter.... the damage is done, and is now being factored in by newcomers to EDAP.

The stock's up a little today, though I don't see that as a threat or a surprise. EDAP was rocked during the first three days of this week, and some sympathy buying was inevitable. As for a target, about the best idea I've got right now is August's base around $1.40.  That's a day-to-day decision though.


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