The S&P 500 experienced a major breakdown below its multi-month trend yesterday and the Nasdaq, NYSE Composite Index and DJIA are all doing (or have already done) the same, says Walter Zimmermann, Senior Technical Analyst at United-ICAP.
Zimmermann’s analysis – which is based on trendlines, Elliott Wave theory and Fibonacci retracements – says we are at the following stages:
Nasdaq – Breakdown after completion of Wave 5 of V
NYSE Composite Index – Acceleration lower after breakdown
S&P 500 – Breakdown below rising wedge
S&P 100 – No breakdown yet, but a decisive break below 896.40 would end bullish case
DJIA – Acceleration lower after completion of Wave V