Sunday, October 16, 2011

Dow Jones World Stock Index Downtrend Correction

As discussed here and here, The Dow Jones World Index moved lower retracing most of the rise from May 2010 to May 2011, as noticed in the weekly chart above. 

The downtrend had an impulsive 5-wave structure (see the daily chart below) which may have ended in the beginning of October setting up an a-b-c correction which can run until perhaps end of November or early December. When this rebound is over, the longer term downtrend could resume. 

Markets Price to Moving Average Snapshot

Most global stock market indices enter medium term green setting up an intermediate term rebound in a still bearish long term trend.