Since the completion of its major wave B in February 2011, the index has been moving in a downtrend channel to complete its major wave C. It is currently forming the last sub-wave of its wave 3. A sharp and short-lived rebound, the wave 4, after that, before the index has its final plunge to complete the wave 5 and the major wave C.
For the chart to behave in this manner, the commodity prices have to come down particulary crude oil prices. Economic activity is expected to slow further due to the European debts crisis. World bourses in general have been trending lower and lower except the US where Dow is hovering within 10% of its historical height, thanks to the money printing by the Federal Reserve.
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