Is IBM's Plight a Micro or a Macro Problem?

In the aftermath of its surprise earnings release before today's open, instead of after tonight's close, International Business Machines Corporation (IBM) is down about 8%, which reflects a huge miss on EPS, on less than expected revenues, and weak forward guidance (the Trifecta!).

Purely from a technical perspective, let's notice that this morning's weakness will be triggered by a significant down-gap open, which doubles also as a breakaway gap down from a 3-year topping formation that projects an optimal target in the vicinity 145, and a maximum target of 130.

Whether or not IBM's woes are a one-off situation indigenous only to the company, or if its problems are a window into the future of the equity market, is a question that will be answered in the days and weeks directly ahead.