DOW Warning: Risk of Sharp Decline Increased

This update expands on the mid June report about equities and the carry trade having possibly topped. Price structure since the early June top in both stocks and Yen crosses (especially the EURJPY) is bearish. This chart of the Dow shows a 5 wave decline and 3 wave setback that may have ended today. Moves of 5 waves occur in the direction of the larger trend while moves of 3 waves are corrective. The risk of a strong decline in stocks and Yen crosses is high.