The trendline-support since March 6, 2009 has clearly been broken to the downside.
From an Elliott Wave perspective we saw a very nice Throw-over in the final ending diagonal, which was C wave of Z of [B].
The break below ending diagonal wave 4 at 10,568.99 has confirmed that a top is in place for a decline to the beginning of the formation at 10,263.97.
The above chart is just a close-up of the final z-wave rise to 10,723.70.
This is a 1 minute chart of the decline from 10,721.50, which is a clear 5 wave decline to 10,561.06 and the following rise clearly looks like a a-b-c correction, which should a least reach 10,622.14, which marks the 38.2% correction of the decline from 10,721.50 to 10,561.06 and also the top of wave 4.
As this is a wave 2 correction I wouldn't be suprised to see a higher rally towards the 10,640 - 10,660 area, but it's not a necessity.
Finally a minor warning - Be aware that none of the other indices has confirmed the breakdown in DJI and the is a possible altenate count saying that this is wave 4 calling for one final rally above 10,723.50. I will not bet on this outcome thus, but just like to know it is a possibility.
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