(Click at the pictures to enlarge)The possible top in the DJI on Monday the 19 of October could still be a perfect hit, but we haven't seen any critical break below the important support, so I'm still undecided - Time will show.
As we are waiting on the final verdicte I thourght you might find the developement in the Bank Index interesting.
We might have an important top in place with the 49.28 high on October 14. From the 49.28 we have seen a very nice and clear 5 wave fall to 46.64 defining wave 1 or possible wave A?
A close below support-line at 46.34 would add confidence in the topping scenario and call for a continuation down to important support near the 43.22 area. If we see a drop of this magnitude that will make wave 3 1.618 times bigger than wave 1, which would be a nice relationship.
As the Banking sector is a leading sector, it fits nicely into the picture of a possible top already been set on Monday or will in the very short term.
Finally I just want to say, that most indices are looking very toppish and I can't recommend being long in stock or the indices at this point. At the very least protectiv stops should be in place by now.
We hope for the best, but should be planing for the worst!
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