• 268 days Could Crypto Overtake Traditional Investment?
  • 273 days Americans Still Quitting Jobs At Record Pace
  • 274 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 278 days Is The Dollar Too Strong?
  • 278 days Big Tech Disappoints Investors on Earnings Calls
  • 279 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 280 days China Is Quietly Trying To Distance Itself From Russia
  • 281 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 285 days Crypto Investors Won Big In 2021
  • 285 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 286 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 288 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 288 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 292 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 293 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 293 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 295 days Are NFTs About To Take Over Gaming?
  • 296 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 299 days What’s Causing Inflation In The United States?
  • 300 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Elliott Wave on The DOW

DOW Ending Diagonal Patterns

DOW - Elliott Wave Forecast

Our previous newsletter for the DOW on Sept 25th 2012 indicated that we were tracing out two ending diagonal (ED) patterns for the DOW. The smaller ED pattern completed shortly after the Sept 25th newsletter and the decline completed at our target in Nov. The following rally that started on Nov 17 2012 was the start of wave (5) up for the DOW and S&P500 as the final rally to complete the larger ED pattern. Both of the ED patterns for the NAS completed on Sept 21st, but the DOW and SPX were still in the larger ED pattern as discussed as a possibility in that newsletter. The DOW and SPX rallied above the top trendline in a throw-over, which now appears complete. We have also been tracing out an ED pattern for the DAX and a smaller pattern for the Nasdaq in wave C of (2), which also appear to be complete, but we are still monitoring the current pullback and a number of trendlines to confirm.

The chart below illustrates our chart from Sept 25th for the smaller ED pattern. When ED patterns complete they are always followed with a sharp decline to the starting point of the pattern. You can see how the decline on the following chart dropped to the beginning of the ED pattern before starting to rally.

DOW smaller ED pattern

DOW larger ED pattern

The larger ED pattern illustrated above is also a bearish pattern, but it has deeper downside targets and completes a larger degree advance, which is even more bearish. We would expect to see a move below the lower trendline with steep downside to at least the beginning of the ED pattern near the 10000 area. The downside would not be complete at this level, but we could see a strong bear rally. We still need to see a little more action to confirm that the reversal is in play, but this newsletter was issued to give you a heads up so you will understand what is happening when the downside accelerates.

These charts are only a guide so that you can follow the action and monitor the expected outcome. The action could play out exactly as illustrated or it may need minor adjustments as we follow it through.

Happy Trading!!!

 


If you are interested in viewing these updated charts and other detailed charts with targets on a daily basis, please see the registration details below.

Elliott Wave Chart Site - IntraDay Market Updates on the DOW, Nasdaq, S&P500, Gold, Silver, HUI and the USD.

To learn more on the status of Gold, Silver, HUI and the USD, please visit the link below for registration details.

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)

With Technical Analysis and Elliott Wave Forecasts, we can be on the right side of the market.

Registration Details

 

Back to homepage

Leave a comment

Leave a comment