Tuesday, 20 November 2012

DJIA complete wave count

Today's chart focuses on the wave count we prefer and the alternative for DJIA. The common ground between those two counts is the fact that we have 3 waves down. 

Scenario 1: Move from 13661 is impulsive and wave count is depicted with blue letters and numbers. We are currently in wave 4 which retraced back inside the lower degree wave 4 and should not overlap wave 1 low at 13296. Of course this overlapping condition is a bit far away and that is why we have to find other signals to confirm if we are in wave 4. Resistance of the upper pitchfork line is one of those lines that should not be crossed. Wave 5 down is expected towards 12400-300. 

Scenario 2: The decline from 13661 is corrective and complete. The wave count is depicted as the alternative (ALT) in the chart above. The bottom that started forming last Friday is showing impulsive patterns with an upward bias. This could be part of a larger bullish move-wave. Clear 5 waves have been formed from the low at 12471.

For more help trading this index don't hesitate to contact me. Thank you for taking the time to read my thoughts.

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