The accompanying chart speaks for itself. As you can see, on the weekly chart the Dow Industrials have snatched victory from the jaws of defeat many times over the last five years. Instead of completing downtrending ABC patterns to their respective D targets, in virtually every instance, selloffs reversed from their p midpoint pivots or very near them. Will it happen again? Since we don’t have a crystal ball, we’ll have to wait and see. But if the downtrend from mid-January’s highs resumes and goes on to exceed ‘D’, it would indicate the almost certain onset of a bear market.
