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The DOW is looking very shaky!!!
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DOW JONES INDUSTRIALS
Topping in wave (5)
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[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]My Bias: market top is in.
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topped in wave (5)
Important risk events: USD: Building Permits, Philly Fed Manufacturing Index, Unemployment Claims, Housing Starts, JOLTS Job Openings.
The DOW has rallied in wave 'c' and is approaching the upper trendline.
So far the rally has been in three waves, which makes this a complex corrective structure rather than a simple flat correction.
The wave 'a' high was at 20976, with the high of the day at 20972, which suggest one more high might occur before completing wave 'ii'.
The structure off the all time high has not been very impulsive so far,
But this could accelerate to the downside quickly if the current wave count proves true.
Technically this market is very weak, momentum indicators on the 4hr chart are pointing firmly negative.
The euphoria in the market place is indicative of a significant high rather than a developing bull market.
Market action has deteriorated in interest sensitive instruments,
More than one-third of all stocks are below their 200-day moving averages.
In NYSE traded stocks, there were more new 52 week lows last week than new highs, even as the market is at all time high territory!
Every indicator of a healthy market is pointing the exact opposite way at the moment.
Now is not the time for investing in the stock market.
I suspect the old adage, 'cash is king' will be back to haunt the market soon.
For now watch the upper trendline for signs of a turn down.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_separator][/vc_column][/vc_row]