Friday, October 30, 2009
Market Completed 5 Waves Down, THE TREND IS NOW DOWN FOR FORESEEABLE FUTURE
The major indices wasted little time completely erasing yesterday's rally, and then some. With the S&P holding below 1074, and then declining to a new low today with the other major indices, it completed 5 waves down from the highs. Most indices are following suit, or some variation of 5 wave declines, but the main point to take home is that the market is declining impulsively which tell us the trend is now down. And once again the Russell 2000 is leading the way as yesterday it sported a clearly corrective rally that was severely losing momentum as the Dow charged higher later in the day. That told us that the Dow's 5 wave rally was bogus. What's of significance in this area is that the Russell 2000 has already broken well below its October 2nd lows. So if the Russell is leading the way, then the S&P, Dow and Nasdaqs should follow soon and break their October 2nd lows as well.
The attached charts show the various indices and their five wave counts, as of right now. The waves can extend or subdivide lower, but they are definitely 5 wave impulsive declines. This is EWP definitive proof that the trend is now down.