Intraday analysis in S&P and DJIA shows that market has topped and is testing important support levels. S&P in the 60m chart can be counted as a complete 5 wave formation from 1374,81 to 1346,65 low. That could very well be wave 1 and now we are in wave 3 down. There is also an alternative count relative to how we choose to view the movement from 1346,65 to 1361,54. If this is part of a 4th wave, then the 5th wave ended yesterday and we should expect an upward correction. We prefer the first count because it matches our wave count in DJIA.
DJIA as seen in the 60m chart, has most probably finished 5 waves down and its upward correction. Yesterdays new low may signal the start of a new downward 3rd wave. DJIA has important support levels at 12400-450 that if broken will support bearish scenario. S&P has important support at 1310-05 that should hold if bulls want to regain the upper hand.
Thank you for taking the time to read my thoughts.
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