• 15 hours Renters Are Striking As COVID Reshapes Real Estate
  • 23 hours Nothing Can Stop The Tesla Boom
  • 2 days 9 Ways The Lockdown Is Playing Out Around The World
  • 2 days WeWork Sues SoftBank For Withdrawing $3 Billion Insider Payoff
  • 3 days Solving Transportation’s Biggest Problem
  • 3 days Big Banks Could Win Big On Fed Small Business Bailout
  • 3 days Trump Increases Pressure On Venezuela
  • 3 days Researchers Create Organic Battery
  • 4 days Gold Is Still A Safe Haven, But Not Very Alluring
  • 4 days China Is Buying Up Billions Of Barrels Of Cheap Crude Oil
  • 5 days Are Gold Stocks Going To Bounce Back?
  • 5 days The Politics Of A Pandemic
  • 6 days What Does CHina’s EV Slowdown Mean For The Battery Metals Sector?
  • 7 days COVID Report Cards Will Brand Businesses Forever
  • 7 days Trump Tweet Sends Oil Soaring 25%
  • 8 days Why The Coronavirus Economic Crash Is Worse Than You Think
  • 8 days Is A Global Currency Necessary?
  • 9 days America Has Shed 500,000 Millionaires Since The Coronavirus Lockdown Began
  • 9 days Trump Wants Another $2 Trillion Economic Intervention
  • 10 days The Surprising Businesses Deemed “Essential” During The Coronavirus Lockdown
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

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

Dow Jones Industrials

Topping in wave (5)


30-min

Dow Industrials 30-Minute Chart
Larger Image


4-Hours

Dow Industrials 4-Hour Chart
Larger Image


Daily

Dow Industrials Daily Chart
Larger Image

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.

 

Back to homepage

Leave a comment

Leave a comment