Dow

I like the simplicity of this chart and it is screaming "bear" at me ! The 34 and 89 dema's have given a bear cross,the latest rally appears to have failed at the 34 dema and there is a head and shoulders topping formation in place.
One way to look at the time cyles is to view the rally from early July 2010 to the high in early July 2011 as a 1 year Low-High cycle and to count time from that top.Three months would normally be your start point,which would also be 25% time retrace but we can also watch 4 months and 6 months (33% and 50%)
We knew in advance that the top in early July might be very significant because on the S&P it squared the yearly range ,360 points in 1 year (360 degrees in time) ,as was pointed out many times in earlier charts on this blog,before we got there. David Bowden used to say that with Gann ,in time your hindsight becomes foresight !