Custom Search

Monday, August 24, 2009

DOW Squiggles

Bah, EWI beat me to the punch on the DOW squiggles, but I worked hard on it and it pretty much mirrors my SPX squiggle chart in my update.

The DOW squiggles are actually much nicer than the SPX and channel better. 5 waves down means, at the very least, there should be another 5 wave move coming. It would be nice if tomorrow wasn't a gap down, that way the bulls would have no "targets" to keep rallying.

What I don't like is EWI shows the squiggles as 5 waves down from today's peak yet they show only Minuette (iii) topping today which means another 5 wave move down actually would kill their structure because wave (iv) would potentially trace lower than makes sense. An extended third wave, should have all the sub wave 4's tracing higher than the previous subwave 4's. Thats what makes it an extended wave! If we have another 5 waves down, then this simple principle will likely be violated and the bears will be shooting for Friday's gap up as a target.

So needless to say because of today's squiggle action, I abandoned the count as having (iii) top out today or even [iii] topping out today. In my estimation its either P2 top or Minute [i] of C. (Minute [i] would allow a bearish retrace for Minute [ii].)

That's why I took the other approach of labeling the 9 waves up from 978 as a finished impulse with the wedge ending move.

Anyways I digress! tomorrow is another day....
blog comments powered by Disqus