Geofftv1

DJI - Close to decision area.

TVC:DJI   Dow Jones Industrial Average Index
The strong rise in US indices since late December has given many bears (including myself) a shock
but when one looks at the chart this rise makes some sense.

Often when a major support line is broken the index will bottom and then bounce back strongly to
the trend line which now forms resistance. DJI has done just this and is fast approaching the area
where a decision will occur.

My own best guess at the EW structure is that from the ATH in oct DJI is forming a leading diagonal
but of course there are other alternatives which will become clearer as time passes.

Note the strong momentum divergence and if DJI breaks the lower channel trendline this may signal the
start of wave 3 black down. Good Luck
Do you think we head back to dec lows Geoff?
Reply
Geofftv1 Ta-Trade
@Ta-Trade, Very likely, momentum shows exhaustion in uptrend. Watch for break of lower channel and gap at 24600.
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