A picture is worth many thousand words already written, warning the worst might be at hand...
Fading momentum already duly noted, its April crossover into the negative and subsequent reaction back to 0 are a mirror image of the technical setup preceding this year's gains, which by all appearances are at risk of evaporating. Maybe even quickly at that.
Yet maybe in store are a few weeks range bound for most, with the Dow Industrials and possibly the S&P 500 moving to nominal new highs for 2012. As much as momentum has been fading since February, its descent certainly has been less urgent than was its ascent late last year. So, it might be possible further damage is contained for the moment.
Since May 1st peak, three of five waves down appear to have unfolded, with the fourth beginning at today's low. Just how these five waves down fit into the bigger Elliott wave picture depends on the index. Each offers alternate possibilities on a top fitting what are bonafide suspect technical underpinnings, and this whether top be past or still yet to come.
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