First off, in yesterday’s update I speculated that we could see 7 waves down instead of the 5 waves that had formed by yesterday. This happened today, with the 6th wave from SPX 1874 up to 1899 (in line with the length of the other two retraces) and then the 7th wave down -so far- to a (marginal) new low. This last wave, also counts well as 7 smaller waves. Hence, the downtrend can -again- be counted as complete. Adding to this argument is that the INDU found support close to several Fib-extensions. It is hard to see on the chart, since these Fib-extensions are all about the same, so I’ll explain below the chart (click to enlarge):
- the 1.618x extension of intermediate a (16,674), measured from the 17,351 Primary III top: 16,255
- the 1.236x extension of intermediate a, measured from intermediate b (17,099): 16,262
- the 1.764x extension of minor a of intermediate c (16,663), measured from minor b (17,007): 16,238
- the 2.000x extension of minor a of intermediate c (16,663), measured intermediate b (17,099): 16,227
With today’s low at 16,274 it’s getting close. Maybe one marginal lower low!?!