[Chart 1 and 2] A potential triple zigzag from the ATH in SPX likely concluded at the recent low, given how much INDU has rebounded. INDU has now regained both SMA50 and SMA200 and SPX closed above SMA50.
Note the positive divergences developed over the past months, and the potential bull-flag from the ATH.
Potential targets to monitor are the upper end of the Q3 range (perhaps higher) in a counter-trend rally (as wave B up), or new high as wave 5 up.
[Chart 3] Short term tracking scenarios.
CHART 1 -
ReplyDeleteFundamental facts are - SPX is down 5 waves from the Aug 22 peak and there are 3 waves up from the last low. And some sort of 5 down (complete or incomplete) from the Nov21-Jan22 peak.
Note the NASDAQ & MID charts.
CHART 2
Mkt is net down for almost a year - longest red candle period since 2007 peak. Down 10 candle months conseq. without a new high.
You would see a clearer picture if you had a chart from 2009, 1982 and 1974.
Forget about the INDUST as it takes only a few stks of the 30 to rise for it to move.