A New Downtrend Begins For The Dow and S&P 500
Alexandros Yfantis | Jun 27, 2012 03:44AM ET
Both the DJIA and the S&P 500 have made downward impulsive moves from recent June highs. Both indices have made 5 waves down.
Things couldn't be clearer as far as the wave struture is concerned. This could very well be the 1st minor wave of a larger 3rd wave that has targets towards 1100 S&P and at least 11700 in DJIA.
Alternatively, such a decline could be postponed if the market is in a process of a more complex wave 2 correction as mentioned in previous posts. In this case it is possibe that the market might move a little bit lower and then make a final upward move above June highs. Thus labeling this downward move as wave X.
Either way our longer term view remains downward biased. So now we wait for either a minor degree wave 2 or the 3rd and last part of the upward correction that begun in early June.
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