Elliott Wave 5.0 "Reboot"

Wednesday, March 30, 2016

DJIA Daily Chart Review And A Potential Bear Attack

When we look at the bigger scale our last major peak was around May 2015 about 10 months ago.
The bigger the bearish trend line is much more obvious than any bullish trend lines I can produce. 
The "C" wave bullish run since the February bottom was nearly at  straight vertical move, with the DJIA making a last attempt at crossing to a newer high with a 3 wave blast.

In the end, I have to be very bearish until the markets show me that another 3 wave crash has occurred. But this top calls for a 5 wave decline in Minute degree, so we have a long way to go before the direction becomes very clear. I am sure all the SC and GSC degree wave counters are going to love this decline as it will be a continuation of what they already have. In the end they are going to be wrong again as they are forcing impulse wave counting onto a  pattern that never showed a single great looking impulse heading down.

The SC and GSC degree wave counters will also be fiddling with their "WXY" waves while a big bullish move is set to fly.  I try to warn my readers when the next major bottom will come as it takes time to reverse the thinking. I give the warnings on the last 4th wave of the decline as even in ETFs you don't want to take a big position all at one.  For now this is of little concern as we have a long way to go.  It could be fast, slow or somewhere in between  so a new record low should develop.

Bull market peaks are the breeding grounds for bear markets, so this has a great looking top to it already.

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