Recently I’ve been drawing your attention to the Weekly Chart pivot levels and “Arc Trendline Distribution” structure and today we’re seeing “inconceivable” downside targets being hit ahead of schedule.
Let’s update our Weekly Chart perspective for the S&P 500 and Dow Jones:
Take a moment first to review our previous planning posts:
January 19: “Daily Pivot Planning Levels”
January 15: “Weekly Planning (Distribution Arc)”
January 7: “Distribution Arc Trendlines and Updated Targets”
The January 7th update particularly was correct well in advance of highlighting the reversal pattern and downside targets (achieved this week).
The S&P 500 – having broken the 1,900 and 1,870 low – has collapsed as would be expected “down toward” the 1,800 new weekly target level.
The 1,800 pivot is the confluence of the late 2014 spike reversal low and the rising 200 week SMA.
To be frank, today’s price action officially and objectively REVERSES the Weekly (Intermediate) Trend of the stock market from Sideways to Down.
The Daily Chart or Short-Term Trend is without any doubt in a prevailing and ongoing downtrend.
Let’s turn to the Weekly Chart Update of the Dow Jones:
Similarly, the key reference point was the 16,000 level (highlighted) and the breakdown there opened up an instant collapse (liquidation) pathway toward 15,500 where we’re trading now.
Reference these new planning levels as the market officially enters a new phase – a bearish phase – not seen since the last downtrend ended in early 2009.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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