S&P 500 Trend Analysis - Sep. 5, 2011
S&P 500 Trend Analysis - 9/5/2011
|It was a mixed week for the major markets. During the week, the Dow Jones Industrial Average dropped -44.28 points or -0.39%. The Standard & Poor's 500 Index dropped -2.83 points or -0.24%, while the NASDAQ Composite climbed 0.48 points or 0.02%. |
The Standard & Poor's 500 Index (^GSPC) closed at 1173.97 on Friday, September 02, 2011. It was trading at the average weekly trading volume. Read More ...
S&P 500 index long-term downtrend is forming a three wave’s structure (See Figure 1). The first wave down (A) had started on October 11, 2007 at 1576.09 and lost 909.30 points, or 57.69%, in 73 weeks and reached 666.79 on March 6, 2009. The second wave (B) gained 703.79 points, or more than 105%, in 26 month and reached 1370.58 on May 2, 2011. Wave B made a lower high; it is a bearish signal. The third wave down (C) is in progress now.
The recent rally had started on August 9th, 2011 at 1101.54 and reached 1,230.71 on August 31st, 2011. It is a sub wave of a long-term C wave and it has a three wave’s structure as well (See Figure 3). Several technical indicators suggest that it was a bearish rally:
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