In both the DJI and the S&P 500 we saw S/H/s tops being activated yesterday, which should open for a decline towards at least 10,825 for DJI and towards at least 1,146 for S&P 500.The neckline should act at resistance, if we regain some of the lost ground.
My preferred count is, that we have seen the top of wave [B] and should be looking for wave [C] lower, but the alternate count could be, that we just are in wave 4 or X and should see one more rally to new highs, when this wave 4 or X is done. How cloud this come about? QE3 maybe...
By the way we now have a confirmed Dow Theory sell signal (both long term and short term). DJT made an new all time high at 5,627.85 on July 7'th but DJI as can be seen was nowhere near it's 2007 top at 14,198.Short term DJT made a new high in early July, while DJI topped in early May.
No comments:
Post a Comment