Weekly Downside Targets Instantly Hit Today Update

Jan 20, 2016: 12:43 PM CST

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.

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Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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Comments
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