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A New Downtrend Begins For The Dow and S&P 500

ByAlexandros Yfantis
Published 06/27/2012, 03:44 AM
Updated 07/09/2023, 06:31 AM
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Both the DJIA and the S&P 500 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.
INDU CHART
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.
SPX CHART
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.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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