|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 (NYSE: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 (NYSE: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 (NYSE: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: