Dow, S&P 500 Bullish Momentum In Danger
Alexandros Yfantis | Mar 25, 2013 12:59AM ET
The Dow is now at the same critical point as the S&P 500. Volatility is high as news related to Cyprus bailout, European debt fears and stability could endanger the bullish momentum that currently prevails in US markets. The new all time highs in the Dow are fulfilled while the entire move of the index is near its end.
The short term wave analysis of the Dow shows us that the recent decline from 14539 is not impulsive. On the other hand, the rise from 14382 to the new high 14546.82 is impulsive. This could be the entire wave (V), but we feel it is more probable that this is only wave (i) of (V).
Therefore our expectations of another leg up are valid according to Elliott wave principle and the Elliott rules. Concluding, we remain bullish as long as prices remain above Friday’s low.
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