Topping in wave (5)
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: FOMC Member Fischer Speaks.
As I expected last night, the DOW is now rallying in wave '5' of 'v' of (iii),
This leg of the larger rally is coming to a close soon, we could see a cooling off of prices in wave (iv) grey next week.
I expect wave (iv) to be a short affair, this would counteract the deep retracement we saw in wave (ii) grey.
The upper target for wave (iii) to complete is still at 20520 where wave (iii) will reach a Fibonacci 162% of wave (i) grey.
Since calling the low in wave 'ii' of (i) back on the 23rd of January, the DOW has rallied 530 points,
Not a bad haul if you managed to ride this wave! I will count that as another win for Elliott wave analysis!
For next week I will expect the completion of wave (iii) and a possible sideways correction for wave (iv) grey.