Saturday, January 16, 2010

Dow Jones ~ Elliott Wave Update Week 2 2010

The Dow made a new high on Thursday completing a possible ending diagonal. On Friday it dropped below the uptrend line connecting the lows of waves B, [ii] and [iv] raising the hope of all bears (if there are any left!?) that the top is in.

Early next week I expect the Dow to retest the broken trendline from below to complete wave (ii). Then, wave (iii) should start which is normally about 1,62 times as long as wave (i).

While I don't see any likely bullish count for the Dow I do see one for the SPX and the Nasdaq. This count would allow for one more push higher.

I'm gonna show it to you later ; )