Elliott Wave 5.0 "Reboot"

Monday, February 22, 2016

Mini DJIA Intraday Review: Is A Correction Due?

Every stock index and every commodity have its own little differences in wave patterns and the DJIA did not travel as low as all the others did. In line mode, it makes a double bottom but when an asset class does not follow along with the rest, then the wave count always has that measure of doubt in it. 

There still may be a bit to go, and sometimes that may only happen in mid week.  Any .618 net correction,  would take us to the support line that I have drawn. Coincidentally, it also ends at an open gap.  There is never any guarantee which percentage points get hit on retracements because it depends on they type of correction that may or may not happen.  I constantly use the 61% for a wave two and 40% for a wave 4 correction as there are millions of potential Fibonacci retracement levels depending on where you count from.  

Anything can still happen, but so far a pretty good looking impulse wave has developed and that is what we need to travel further in our perceived direction.