Wave Pattern Traders Team
Wave Pattern Traders
The declines on both the INDU (DJIA) and NYSE can be counted as a 5 wave move from their respective Jul 2019 highs for an impulse wave, both markets have extra gyrations which allow us to be able to count an impulse wave.
Whilst the SPX and NDX declines from their Jul 2019 highs are not as clear as some other US markets, the declines on the INDU and NYSE could be offering substantial clues to suggest the next 'likely' direction for the SPX and NDX. If the current bounces remain as a corrective pattern on both the NYSE and INDU, then it can support a move lower for the broad markets, regardless if the SPX and NDX push a bit higher.
If you have been actively watching the markets over the past 18 months you may have noticed that some US markets have not participated in the new all-time highs made by the SPX and NDX, that's a bearish non-confirmation.
So going forward, a little more upside could be seen in the US markets, but as long as they remain below their respective Jul 2019 highs, then we are going to maintain a bearish bias and look for opportunities to sell the SPX and NDX. The ideas on the INDU and NYSE further support the bearish setups we are currently tracking on the SPX and NDX.
We are wrong if any of the markets move above their respective Jul 2019 highs. So in the case of the INDU, SPX, and NDX, that would mean a new all-time high.
The content of this article is for educational purposes only, the information supplied shall not be construed as a recommendation to buy or sell any security or financial instrument. Wavepatterntraders will not be held responsible for any losses occurring from the information provided within the article. The information expressed within the article is solely the opinion of the author/owner. Wavepatterntraders are not registered investment advisers. Readers are strongly urged to consult an investment consultant before making any financial decisions or investments.
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