Elliott Wave 5.0 "Reboot"

Tuesday, April 19, 2016

Mini DJIA Cash Chart Bull Market Review: Breaking 18,000!



This chart does not trade, but just tracks the cash index. It is also what they call a daily type chart and I'm using my standard 500 bars.  

From the start of January this index charged up, in what I can fit into an impulse at this point. Of course, there still could be a small expanded pattern in action where it may act like this party is over, but it would rise from the dust and roar to life one more time. 

If the 4th wave triangle was over then this bullish cycle is still not nearly big and long enough to be the "thrust", that  follows any 4th wave triangle.  At this point I could take it as a "D" wave top, but then a deep 3 wave crash would have to follow soon. 

Even if this chart travels to new record highs, it can still be a "D" wave as a triangle has a tendency to do that. There are only small impulse waves that we can count out as all the rest are more like diagonal or 3 wave patterns.  We need good looking impulse waves so the markets can compound and build distance, when they don't happen we have to look for corrections instead.