First let take a look at the Global Dow index. It's close to the 61.8% retracement of the decline from 2,877.52 to 1,139.90, which is also where trendline resistance from the top is fund. Finally the EW-count shows, that wave A down was a nice five wave decline. Wave B, which is still ongoing, should be near it termination point in the area from 2,214 - 2,251.
If we take a look at the Dow Jones Industrial (red) vs. the Dow Jones Trasportation (black), we can see a very clear non-confimation. This is a classic Dow Theory warning signal, that an important top could be close. A break below 4,988.67 in the DJT will confirm the non-confirmation signal and call for a top in the DJI soon.
First let take a look at the Global Dow index. It's close to the 61.8% retracement of the decline from 2,877.52 to 1,139.90, which is also where trendline resistance from the top is fund. Finally the EW-count shows, that wave A down was a nice five wave decline. Wave B, which is still ongoing, should be near it termination point in the area from 2,214 - 2,251.
If we take a look at the Dow Jones Industrial (red) vs. the Dow Jones Trasportation (black), we can see a very clear non-confimation. This is a classic Dow Theory warning signal, that an important top could be close. A break below 4,988.67 in the DJT will confirm the non-confirmation signal and call for a top in the DJI soon.
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