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Dow Shredded: 2011

This is an update on my last long term DOW analysis.

Summary
: top is  in, get short, Bob Prechter will be happy (and right).



Basically, the DOW is headed to the middle line of the channel which passes around 8500 by year end. Closing the year below 9500 will indicate continuation of the long term downtrend. I don't see any high volatility above 9500,  probably the best idea is to stack on the way down. A lot of bears were killed on this move, so, there are not much market participants at these levels to rise volatility.
Secondary downtrend channel has now a new angle, we should trade in it until the   bottom.
The primary downtrend channel has new upper line. median line was also corrected to fit the trading pattern correctly. In red color I have highlighted the extremes of the channel.

Projection for the final bottom has not changed , it is around 2000, and i think it will be 2500.

I owe you updated yearly candlestick chart, but I have put the green candle for 2010 as green box.