ShepWave subscribers should not be surprised by this morning's action. 

 

As shown in recent updates the Dow hit the Fibonacci Extension target of 14,051 was hit (actually hit 14,021) which was a key area for the Dow to reverse..  We then had an 'outside down' month in the S&P 500 and Dow Industrials Index for the month of July. (Month that went higher than the month before but closed below the low of the previous month.)  As mentioned this is a potentially very bearish signal that could last for months.  Also, we are possibly dealing with an 'ending diagonal' for the rally which began at the lows of October 2002.  Once ending diagonals are broken they tend to retrace to the beginning of the ending diagonal.  That would be to around 7,000 for the DOW.

With that being said, for those of you who took advantage of the SELL SIGNAL for Mid to Longer Term trades a few weeks ago you should be  well  in the black.  ShepWave recently has been showing intra day trade analysis.  Please remember, the mid to longer term trend is confirming to be DOWN.  There will be bounces, but any surprises should come to the down side. 

When will we get a BOUNCE good for a LONG side trade that we can actually keep open for a few days?  See the Special Friday Morning Update Published last night for these potential target areas.  Today's Intra Day Update will be updated through out the day.

 

go to http://www.shepwave.com/ for Updates, Analysis, and Targets.