The BIG Picture for The DOW and The Possibilities Ahead

By: Enda Glynn | Tue, Jan 3, 2017
Print Email

Long term count:

Dow Industrials Daily Chart
Larger Image


4HR chart:

Dow Industrials 4-Hour Chart
Larger Image


30 min chart

Dow Industrials 30-Minute Chart
Larger Image

My Bias: Neutral big downside risks.
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Short term wave count: Upside from 17,066 wave 4 blue
Long term wave count: Topping in wave (5)
Important risk events: USD: FOMC Meeting Minutes.

I have updated the wave count today to account for the gap up out of the open today.

That rally and decline can be viewed as an ongoing wave 2 red.

The decline off the all time high can be counted in five waves to complete wave 1 red.

Wave 2 red should trace out three internal waves and the price could be moving up in wave c of that correction now.

19987 is the critical high right now, a break of this high will mean a slight rethink of the short term wave count.

The larger count is sound, we are at or very near one of the greatest stock market tops of all time right now.

This top could challenge 1929 in terms of the havoc and wealth destruction that followed that high.

With that in mind, I am speaking of declines in the region of 80% or even more!

The lows that are to come in the future could also be the greatest buying opportunity that ever existed!

So at this moment I am SUPER bearish on the DOW, but also anticipating the great low in asset prices that is to follow the coming crash.

At that low, generational wealth will be created, for those that are savvy enough to hold onto some capital to deploy at the low.

But first of all, there is a very significant selling opportunity at nearby highs to deal with.

The current short term wave count is labelled in the most bearish possible wave count.

Lets see how the next few days play out before we test the downside.

 


 

Enda Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

Copyright © 2016-2017 Enda Glynn

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com