Tuesday, July 6, 2010
Downtrend May Be Resuming
My latest posts warning of a snap back rally came to light this morning as the market surged higher to a strong triple-digit Dow gain. But the rally was short lived as the market is well of its highs and has now just declined in five waves just a few minutes ago as you can see from the 5 minute chart above. With a small 3 wave rally completing prior to that 5 wave decline we see now, we should be aware of a resumption of the downtrend.
The 15 minute chart above shows a possible wave count that puts the rally today as a wave 'c' of a three wave rally composing wave 'iv'. The five wave decline seen on the 5 minute chart at the top may signal that wave 'v' down is now underway. Wave 'v' will most likely get below 1011 at a minimum, before it even thinks about bottoming. 1043 remains key for this short term bearish outlook.
PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.