DJIA Record High Review And the Fast Tumble

Some have no clue why the markets are crashing when all the fundamentals are running on all cylinders. Sort of. Besides the fact that the DJIA has made a near vertical move on weekly and monthly charts, this market is running out of steam. It could still take weeks before the herd has a slogan it can use.

The DJIA sliced right through the bottom trend line and it was exactly what I hoped would happen. If our wave counts start off too big then eventually we become too insensitive to major turnings. This happened in late 2008 with expert wave analysts calling for a DJIA crash down to 1000.  The expert wave analysts missed the biggest bull market since the depression and they have done nothing to fix that problem. Making cosmetic adjustments are easy, but if we don’t know the idealized wave structure we can flip numbers and letters around like a guy flipping hamburgers and they will have little meaning.

I would love to give this move more time for further downside.  We don’t have a double top to contend with, so our bear market starting point is clear “At this time” I never said the wave count is “clear” only the peak is clear!   😉

It will be tricky to catch any intraday counter rallies, especially this early in the game.