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Sunday, February 19, 2012

Dow non confirmation between the DJI vs. DJT


The above chart shows the Dow Jones Industrial index (DJI - The black line) and the Dow Jones Transportation index (DJT - Mixed red and green line).

The first major Dow non-confirmation between the two was in mid-2007 to mid-2008, where the DJT made a new high, but the DJI did not.

Then we saw an even bigger Dow non-confirmation signal between mid-2008 and mid-2011, where the DJT made a new top in 2011 and the DJI was not even close. To my knowledge, this is the bigger non-confirmation signal between the two ever.

Finally we again have a non-confirmation between the two from mid-2011 and to today, where the DJI has made a new high, while the DJT has not and isn't even close to do so.

These multiple Dow non-confirmation signals all tell us, that we are not in a new overall uptrend from 2009, but are looking at a major bear-market correction, I do think we are very close to finish this major bear-market correction for a continuation of the overall bear-market, that began in October 2007. Friday we reached my target-zone for wave 5 of C (see my post here: http://theelliottwavesufer.blogspot.com/2012/02/elliott-wave-and-technical-analysis-on_17.html), but we of cause need some confirmation, that the top is in and the very first little signal, that the top, might possibly be in place is a break below 12,753.62 in the DJI. A break below 5,174.83 in the DJT and a break below 1,340.80 in the S&P 500.

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