Elliott Wave 5.0 "Reboot"

Thursday, January 7, 2016

DJIA Review:Has The Eagle Landed?


 

This is the month of March contract which runs during the night from which we can see better what has happened.  The cash chart becomes far to jerky as it tries to catchup the following morning. It also matches what happens in Forex much better. 

This DJIA chart made a landing at about the 16,400 price level and now has proceeded to run the opposite direction and is heading north! That's all fine and dandy but it must keep going north for a 100% retracement of the entire crash.  

Only time will confirm this, but otherwise if it does not hold then it will be the start of a very ugly move that is far from finished. As it sits right now we can count it as a diagonal structure so it matters little if any part has dipped into the previous wave 2.

It will be important to watch for a 3 wave move that should go to newer highs, otherwise it would be just another bearish rally.