price action from the all time highs in both DOW JONES and S&P imply further weakness is to be expected. Both indices declined having made 5 clear waves down. The upward bounce reached the 61,8% Fibonacci retracement in a three wave pattern that is common for corrections that follow impulsive moves. According to our Elliott wave analysis on both those indices we should expect a new downward move that could push prices below 1680 for S&P and below 15420 for DOW JONES.
The big question however is whether this decline will be just another shallow correction on the way higher, that will only retrace a portion of the rise from 24th of June or is it a bigger degree correction that could put the longer term upward trend in danger? For more detailed analysis and real time comments and a view on my trades, become a subscriber today.
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