DOW Ending Diagonal Pattern
DOW Short Term Forecast Update
Many investors have been frustrated with the choppy action on the DOW, so we have provided a chart to illustrate our forecast on the expected price action.
This corrective choppy action is an ending diagonal pattern which is a terminal pattern. We should see further downside below the lower trendline with a a sharp decline to at least the starting point of the ED pattern at 12550. We should expect to see a brief rally at this level before further downside.
DOW
We have seen a minor breach of the lower trendline, but a continued move below the lower trendline will confirm that this pattern is complete. The price action is still near the lower trendline so there is a possibility that we could see another wave up in this pattern, but that scenario is unlikely at this juncture. Further downside will mark the end of the current rally with two possibilities on the downside targets, both significantly lower.
We have been following an ending diagonal pattern for the SPX which also appears complete.
These charts are only a guide so that you can follow the action and watch for the expected outcome. The action could play out exactly as illustrated or it may need minor adjustments as we follow it through.
Happy Trading!!!
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The commentary and forecasts are updated daily, including intraday commentary and chart updates. Fibonacci pivot dates and cycle analysis are also utilized to forecast reversal dates. The indices covered include the NASDAQ, DOW, S&P 500, SOX, Nikkei, DOW Transports, TSX, BSE, KSE, AORD, HSI, DAX and FTSE. Commodity charts include Copper, XOI, Crude Oil, Nat Gas, Gold, GLD ETF, Silver, SLV ETF, HUI and/or the XAU (Gold and Silver index). Additional Elliott Wave charts cover the US Dollar (USD), EURO FXE ETF, Canadian Dollar (CAD) FXC ETF, 10 Year Treasury Note Yield (TNX), Bank Index (BKX)
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