AT&T is topping ahead of earnings release

A daily close below 34.40 would indicate that the Flat correction (A-B-C), which has unfolded since Dec 2014, is over. There is a short-term reversal pattern that supports the case. Another possibility in the short term is that we could have 5 waves down already completed, than there should follow a move up to 35.30 area, and, finally, the sell-off.

AT&T is scheduled to report earnings tomorrow after market close. The forecast EPS stands at $0.63 per share vs $0.62 year ago.