The primary trend remains bullish, though.
Very short update, as I don’t have ample time.
The Industrials have been declining for 8 trading days. The SPY and the Transports for 9 trading days. All of them have declined for more than 10 calendar days. Hence the time requirement for a secondary reaction (under Schannep’s rules) has been met today.
As to the percentage decline requirement, it has been met by two indices, namely the Transports which have declined -5.03% from their Sept, 18 closing highs and the SPY which declined -3.7% from the Sept, 18 closing highs. Since two indices have declined more than 3%, the “extent” requirement has also been met.
All in all, now stocks are officially in a secondary reaction.The primary trend remains bullish, though.
Here you have an updated chart. The red rectangles highlight the ongoing secondary reaction.
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| Secondary reaction (correction) against the primary bullish trend (red rectangles) |
Gold and Silver and their stocks.
No changes in trends, all of them still flirting with a reconfirmation of the primary bear market. But not there yet.
Sincerely,
The Dow Theorist.
