weekend update

The DJIA peaked at 10,705.55 in July and the COMPX at 2218.15 in August. For the past three weeks both indices have been declining; The COMPX about 5% and the INDU about 3%. It does appear that the three week zigzag has extended. Let’s call this wave A of an ABC decline. It looked to me like a perfect zigzag formation right into the wednesday lows. Then instead of a 3 x 3 down, it extended into a 5 x 5 by taking out the lows on friday. This would indicate the low should be in place by midweek or so. Then, expecting a week or two on the upside, then another wave down to complete this correction from the recent highs. Over head resistance at about 2160 – 2180 COMPX and 10,550 – 10,600 DJIA. Near term support 2080-2100 COMPX and 10,200 – 10,250 DJIA.