Dow crashes through rising wedge formation to give SELL signal

The Dow collapsed yesterday…

The Dow collapsed yesterday and has shot through the lower parameter of the rising wedge/ending diagonal – see chart below. In terms of the wave count this may be wave 5 of the first leg down and what I thought was 5 may in fact be part of an irregular 4. However we have no confirmation that the latest decline is over at this point. Last week I was theorising on the similarities of the hurricane in 1987 and the recent storms in the US and the similarities, market wise, are now just starting. I also outlined two scenarios with regard to the triangular action and both may come true. Meaning we have simply sold right through the lower parameter and we may now re-test that parameter (which is currently around  13050).

You can see the chart here – http://www.johnpiper.info/081112.gif

To receive a full copy of this report and future occasional reports at zero charge email me at jptt@aweber.com

For subscription details go to http://www.johnpiper.info/jptpromo.htm

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @trader8888

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  mattcollom

• 

  IQ Option

• 

  Ed Liston

• 

  Alpesh Patel