New high again at 1067.64 . 1070 - 1073 - 1085 may be an easy reaches . Note: Long term bullish channels.
Bad economic numbers are believed to be the cause pushing the market down today. Tomorrow is the Nonfarm report day; more volatile moves can be expected. The market movement in these two days may give clearer indication about its direction in the near future.
Elliott Wave Principle: A theory with Bipolar Disorder . According to Prechter, the year 2000 marked the start of a Grand Supercycle bear market to last almost a century. Prechter's preferred count has Grand Supercycle degree Wave IV as a contracting triangle, of which the first wave (A) will take the DOW to below 400 before 2015. This, of course, will be accompanied by severe deflation and a global depression. There is not much wriggle room in this count; the US market should start collapsing fairly soon if it is to reach the bottom of an A wave zig-zag within the next 10 years. This should then be followed by a fantastic B wave zig-zag towards the year 2000 highs, followed by C-D-E for the remainder of the century. Such a volatile count presents the trading opportunity of a lifetime. According to Neely, however, the year 2000 commenced a Supercycle degree Wave IV. Under this count, the stock market is likely forming a flat, a triangle or some complex combination of such corrective patterns to end around 2015. Neely's present count has Wave A down from 2000 to March 2003 and Wave B from March 2003 to present (but presently unfinished). Neely, in 2004, stated: "the 2002 stock market low in the Dow and S&P will not be broken for the next 50-100 years. Structural clarity on a daily time frame is very low, so I prefer to reserve specific forecasts on that time frame." He said the same thing about the crash low of 1987 back in 1988 while most others were convinced that a depression was imminent. Following this Supercycle Wave IV correction, Neely's forecast calls for a final fifth wave to commence and bring the DOW to at least 100000 and the S&P to 10000 by mid-century. Neely's NeoWave approach is followed by a much smaller contingent of analysts than Prechter's traditional approach as most find its complexity daunting, myself included. http://yelnick.typepad.com/yelnick/2005/05/the_great_wave_.html
DJI & NASDAQ P&F turn bearish, price obj. = 9350, 1990. SPX P&F High Pole Warning on 01-Oct-2009, price obj. still = 1295. The red lines are crossed DOWN in daily charts :eek: .