Elliott Wave 5.0 "Reboot"

Thursday, February 25, 2016

Mini DJIA Intraday Rally Review To "B" Or Not To "B"?

As much as I would like to see the DJIA keep right on going, in the last move the waves started to overlap dramatically. This may spell trouble in the short term as a "C" wave crash could happen.  
If that is the case, then I would' t want to see the DJIA push to a new high just yet but give us a nice "C" wave nose dive. Of course that would send panic through the stock markets again.  

If any correction only drops back to say the 16,400 price level, then, yes another leg up could happen. 
They wave the markets have been moving shows that pretty well formed impulse waves dominate the charts, which is a good sign over the big picture, but when the patterns turn inverted and we don't notice it or pay attention to them then, shit can hit the fan so to speak and the markets would come crashing down. 

A Triangle could have played out as well, in which case the DJIA would have to break to newer highs. Approaching the end of the week, the bulls have worked hard to get the stock market this far  and many times they will take a break on Friday as they close out their positions before they go home from a hard day's work.