Friday, 30 March 2012

S&P 500 shows 5 waves down, defining the trend as down

The S&P 500 shows 5 waves down on the hourly chart. According to Elliott Wave theory, 5 waves down defines the trend as down. Okay it's only the hourly chart, but earlier in the week I showed rebounds lower from trend lines on the daily and weekly charts, arguably more significant pieces of evidence for the near term bearish case. So for now, unless/until the March 27 high is beaten, we can define the trend as down for the S&P 500.