Wyckoff Topping Process-DJIA

DJ:DJI   Dow Jones Industrial Average Index
2236 25 12
Richard Wyckoff developed a psychological model for tracking the emotions that play out during the topping and bottoming processes. This chart shows the labels used by Wyckoff, placed where I believe they are appropriate. The same labels fit the Russell 1000             and S&P 500             , but are less obvious.
As you can see, we should see another bounce higher. If it only partially retraces the "Upthrust" peak, this top will be very near the end. What will follow should be the mark-down phase, which will end with a panic capitulation event. We can then transition to Wyckoff's method for tracking the bottoming process.
TP-I closed all positions.
Like the chart & couldn't agree w/ u more on the fact that if the mkt. can't get past or retrace more than half of the Upthrust peak then the mkt. will have indeed topped out and like u said the mark-down phase will begin before the big sell-off. The only thing that could stop this topping pttn. is a break & follow-thru of that halfway point of the Upthrust peak so it will be very interesting to see how the mkt. plays out the next couple of weeks.
Well did we get a one day throwback?
Brilliant. Looking at common indices thinking I want to see something looking like an H&S formation but tilted to the major down trend lines. This gives me answers & confidence. Thank you.
Thank you for all the comments. I am pleased to see that my submitted chart has provoked a lively conversation.
Nicely done! Glad to see Wyckoff getting a solid treatment.
MTstiles andrewunknown
Thank you. I have some proprietary supply and demand breadth indicators that support the above chart. I wish I could have includes in the post.
Have you done a comparison with Dow Transports? What would you conclude with its chart pattern. Looks nothing like Nasdaq, S&P, DJIA, or Russell. DOWT pattern looks very bullish, which wasn't the case in 2011 before the previous Debt limit fight resulting in a 20% correction.
Leclaireur QuantitativeExhaustion
Dowt is exactly in the same pattern, only difference is it seems to lag in correction compared to markets. Market financials know something that Dowt doesnt yet.
You're the first one to mention a lag. If you show me on a weekly chart I'll believe you.
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