Elliott Wave Count Predicts Tuesday's 250 Point DOW Decline, in One Day!

By: Enda Glynn | Wed, Mar 22, 2017
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Dow Jones Industrials

Topping in wave (5)


30-min

Dow Industrials 30-Minute Chart
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4-Hours

Dow Industrials 4-Hour Chart
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Daily

Dow Industrials Daily Chart
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My Bias: market top is in.
Wave Structure: Impulsive 5 wave structure, possibly topping in an all time high.
Long term wave count: Topped in wave (5)
Important risk events: USD: Existing Home Sales, Crude Oil Inventories.

After a flat week for the stock market Tuesday's action jolted it back into life!

On Monday night I released my daily analysis and I spoke about the precarious state of the DOW saying

"The DOW has lost its upwards momentum completely, as evidenced by the momentum indicators in both the 30 minute and 4 hr chart.
A bearish downwards cross of the centerline happened again today on the 4hr RSI and MACD.

The wave count off the high is unusual, as we don't often see the wedge pattern, BUT, the rarity could signify the rarity of this moment.
A turning point to remember, so to say."

On Monday night the DOW stood at 20908,
With the wave count looking very bearish and calling for a drop in wave '3' red.
On Tuesday evening the market dropped to 20640,
a 250 point decline in a single day!

This is the power of Elliott wave analysis in action!

From here the downside momentum should continue,
with only intermittent corrective rallies.

The action today is fitting for a third wave, this is usually the longest and strongest wave.
Wave '4' should be a three wave affair, and should complete before resistance at 20777.
The alternate wave count still views the current decline as wave (iv) grey, so this is something to watch out for.
further declines below 20525 should cement the trend change and herald in the bear market.

 


 

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.

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