Elliott Wave 5.0 "Reboot"

Monday, February 29, 2016

Mini DJIA Intraday Review:



The DJIA roared back to live which was not unexpected, but there is a possibility that the bottom we had was an expanded bottom besides a diagonal bottom. We also got a wild 4th wave triangle which means I have to come up with at least one higher degree top. 

Any wild correction could take us back down to the triangle before it cranks up again. That low that was created early this morning is the key,  as we can interpret it several different ways.  Call that bottom an expanded bottom and  it we would have the makings of a perfect short play, but if it was a diagonal bottom, then a short play turns into a bear trap very quickly.  

It may take a few days to see what ensues, but if a correction shows up, then abandoning any bearish thoughts instantly would be the wisest course of action.  You have very little time to make these decisions and it is best to practice them with a virtual account before you ever use real money.