Elliott Wave B subwave 3 forming short squeeze

DJCFD:DJI   Dow Jones Industrial Average Index
Big downdraft from 25402 -> 24407 knocked 1395 pts off Dow for correction wave A.

Reaction wave B ongoing now completed subwave 1(up), 2 (down) with the green hammer Doji Monday. Shown in more detail in this idea.

Subwave 3 can carry index as high as 24686 before Wave 4 reaction retraces, possibly as low as 24440, but not below subwave 1 top.

Subwave 5 can carry index as high as 24948 on Fibo 0.618 retrace but higher unlikely given strong R at 25k . Possible lower high on 13 July.

Once subwave 5 completes, the bullish impulse will exhaust and Main Correction Wave C will begin another downdraft to around 21800, possibly lower.
Trade active: After I drew this model the closing price for 7/03 ended up exactly at the #2 marked on this chart. So as discouraging as it is to get beared down on every rally, the projection called for subwave 2 to end just about where we find it. Subwave 3 might start as early as Thursday post-US holiday. This market is volatile and could snap down suddenly any day but it's very risky to short into this wave B, especially if subwave B(3) gains bullish momentum. I also noticed a converging triangle with price wicks from last 3 highs and 3 lows forming an arrowhead. These can break either way and often do form a continuation of the trend (down here) but absent any further news shocks, could bode an upside breakout. Good luck!
Trade closed manually: I closed this position and took stop loss after failure to rally and successive lower highs past week with today's rally even more dismal than Tuesday 3 July. It's a bull pennant and running out of time fast. See updated idea in next post. EWT failed. It happens.
Trade active: Well looks like we're back on for an upside breakout from the box; hesitated to call this earlier but looks like they're going to buy more, at least this week. Puts us into Elliott 3rd subwave of B correction reactive wave finally materializing. Look for Dow 248 maybe a bit higher to enter shorts. Wave C still coming later in the month.
Trade active: Bulling it up over 248 soon let's see how high it gets before we start shorting
Trade closed: target reached: Yeah closed out the calls and rolled into puts and the Donald popped new tariffs overnight- better to be lucky than good gonna be a wild ride now peeps!


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