Not long after the last post, SPX broke below the proposed 'neckline', and hence invalidated the Inverse Head & Shoulders.This is a bearish development. The only consolation for the bulls is that the downtrend remains in a Corrective channel, and has not yet developed Impulsive characteristics. In the last few sessions, a positive divergence developed on the hourly, resulting in a relief rally.
Can you count 5 waves up from Jul-10? As outlined in an earlier post on the DJ World Index, are we staring at an end of this uptrend? For a downtrend to take root, selling activity needs to pick up pace right here with better volumes.
For the moment, short-term upside is capped around 1330. A continuation of the uptrend requires a break above the downtrend channel.
The good news for the bears is in the chart below. The recent declines also broke the uptrendline of the rising channel (blue).
Can you count 5 waves up from Jul-10? As outlined in an earlier post on the DJ World Index, are we staring at an end of this uptrend? For a downtrend to take root, selling activity needs to pick up pace right here with better volumes.
For the moment, short-term upside is capped around 1330. A continuation of the uptrend requires a break above the downtrend channel.
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