Has the upward correction ended in S&P and DOW?

Has the Greek market topped?
February 22, 2013
What members received yesterday?
February 26, 2013

As posted last week in our posts in twitter, after the 5 waves down in S&P we were expecting a corrective upward recovery. So what is the most possible market direction starting this week? It has been noted several times in several posts before that the market needs a good sizeable correction towards 1470 and we believe it has started. The recent highs are expected not to be breached. After Friday’s upward corrective movement that has completed 3 waves (typical wave theory correction), the markets are expected to fall to new lows.


DOW as shown above has retraced a bit above the typical 61.8% retracement. Resistance is found at the previous wave ii at 14010-14050 area. The analogy is the same for S&P, as shown below.


S&P hasn’t reached the 61.8% retracement but also completed an upward 3 wave correction. For our wave counts for both indices will be confirmed bearish if prices don’t move past the start of wave i (recent highs) and if prices start a new downward move that breaks recent lows. For more help trading these indices become a member subscribing in our Premium Services page.

As always, thank you for taking the time to catch up on my thinking.


Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.