CoinChartist

DJI - The Stock Market Enters Wave 5: Blow-Off Top Then CRASH!

Long
TVC:DJI   Dow Jones Industrial Average Index
Although the sentiment is incredibly bearish and the world expects the stock market to underperform, it has left thin order books, low liquidity and volume, and an overly emotional state of the market. Considering how certain most analysts, traders, and investors are that a recession is already here, most are in cash, short, or sidelined. This state of the market will lead to FOMO and a rapid chase of prices higher in the most emotional and hated rally ever. It happens fast, sucking in people very late into the wave, and ultimately ends faster than they are prepared for. Many people will take on debt to buy more very close to the top. Just as sentiment switches back to ultra bullish, everyone will be blind enough for the real recession and markets will collapse. This is really how Elliott Wave works - it is a socio-economic phenomenon based on investor sentiment and human behavior.

I'm publishing to be able to look back and see if this trajectory was correct at all.

CoinChartist is run by Tony "The Bull", a level 3 CMT student & technical analyst fascinated w/ Elliott Wave Principle, Hurst Cycle Theory, W.D. Gann, Japanese Candlesticks, & other classical charting methods. Visit coinchartist.io for free TA education!
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