Since last update, INDU captured its downside red 1 target and bounced:
And SPX captured its 2800+/- target (from May 8), and bounced.
The escalation of the trade war with China is certainly going to be near-term bearish for the US economy, and the market along with it. It's interesting to consider that the INDU chart above was discussed in early January, when few people though the rally could run that high... and then I intentionally didn't discuss it again until it appeared possible that it might be about to complete (c) of the proposed B -- which was on May 1, when few people thought the market could turn suddenly bearish again.
Don't get the wrong impression: That count isn't a "done deal" yet or anything. But it remains a very real possibility. It will be interesting to see if bulls can mount a continued defense of the recent lows, or if they fail directly. Trade safe.
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