Tuesday, 26 June 2012

A new downtrend begins in DJIA and S&P

Both DJIA and S&P have made downward impulsive moves from recent June highs. Both indices have made 5 waves down. Things couldn't be clearer as far as the wave struture is concerned. This could very well be the 1st minor wave of a larger 3rd wave that has targets towards 1100 S&P  and at least 11700 in DJIA. 

Alternatively, such a decline could be postponed if the market is in a process of a more complex wave 2 correction as mentioned in previous posts. In this case it is possibe that the market might move a little bit lower and then make a final upward move above June highs. Thus labeling this downward move as wave X.

Either way our longer term view remains downward biased. So now we wait for either a minor degree wave 2 or the 3rd and last part of the upward correction that begun in early June.

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