Monday, May 17, 2010

Dow Jones ~ Elliott Wave Count 17 May 2010

As I said all Mondays are up days : )))

Most people are counting the decline from 10920 to 10436 as a motive wave down. A valid count and very likely if we drop below 10436 again but what if a correction ended at 10436 today?

A rally above 10920 would almost certainly confirm this scenario that wave [iii] started today with a target of 12000!

A comparison with Jan 2010. We got about the same pattern five months ago. First, many (including me) were counting it as a 1-2-[i]-[ii] down and later when the Dow rallied above 10314 we changed the count and thought that wave 1 ended on Feb 5th. But the rally did not stop until 1000 points higher:

May be the same will happen again?