• 18 hours The Single Most Exciting Mental Health Breakthrough Of The Decade?
  • 3 days Pipeline Hackers Lose Access To Ransom Funds
  • 3 days Military Coups Are Big Business
  • 4 days Crypto Market Crashes As Tesla Turns Its Back On Bitcoin
  • 5 days Gold Bulls Are Facing An Uphill Battle
  • 6 days Has The Dogecoin Hype Fizzled?
  • 8 days America's Semiconductor Shortage Is Just Getting Started
  • 11 days The EU Begins Backtracking On China Trade
  • 12 days Americans Are Sick Of Unfair Taxation
  • 14 days No Jab, No Job: The New Hardline Policy of U.S. Employers
  • 16 days What’s Included In Biden’s $6 Trillion Economic Plan?
  • 17 days The “Great Car Comeback” Brightens Oil Demand Outlook
  • 18 days The 3 Most Profitable Covid-19 Vaccine Stocks
  • 20 days Beijing Launches Digital Currency To Break AliPay-WeChat Duopoly
  • 21 days The New Economic World Order After Covid-19
  • 25 days 3 Signals To Watch For A Stock Market Correction
  • 27 days Netflix Earnings Red Alert: Subscriptions Could Underwhelm
  • 28 days Wall Street Banks Are Back
  • 28 days Elon Musk’s SpaceX Scores Big Win Over Jeff Bezos’ Blue Origin
  • 29 days Which Country Is The World’s Largest Investor In Batteries?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

Dow Jones Contracting Triangle Scenario

Topping in wave (5)

30 min

Dow Jines Industrial Average 30-Minute Chart
Larger Image

4 Hours

Dow Jines Industrial Average 4-Hour Chart
Larger Image

Daily

Dow Jines Industrial Average Daily Chart
Larger Image

My Bias: Long towards 20,500
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: WEF Annual Meetings, Building Permits, Philly Fed Manufacturing Index, Unemployment Claims, Housing Starts, Crude Oil Inventories, Fed Chair Yellen Speaks

The Triangle scenario which I spoke about last night seems to be bearing out so far as this sideways churn keeps going.
I have updated the Elliott wave count to make this the primary wave count.

It looks likey that wave (a), (b) and (c) are complete at the lows of the day.
So I am watchin for the market to create one more higher low in wave (e) to complete wave [iv] green.
At this point the odds of a significant rally will be very high.
We could see another 1000 points on the DOW without much hassle.

The larger wave count is still intact, and in fact I favour a final rally within the overall bearish larger picture I am painting here.
One last high above 20500 will complete a nice five wave form off the November lows.

There is a higher target at around 21190, shown on the 4hr chart, where a Fibonacci extension of wave [i] green is projected off the wave [ii] low.
This extreme high is not unlikely from here and will still fit within the larger bearish wave form.

Firstly the contracting triangle must complete over the next few days.

 

Back to homepage

Leave a comment

Leave a comment