My previous extended flat correction idea was voided but I still believe that the current bullish push higher is a corrective wave. Wave 1 corrections are often deep as the bulls feel that the wave 1 low is another buying opportunity in a never ending rise!
It is now possible that DJI is completing wave c circle of intermediate wave (2) black which if correct may complete somewhere in the highlighted area.
If this was wave 3 of another impulse wave I would expect to see much higher momentum which is NOT the case.
Of course I may be wrong and if DJI goes above 26953 I this idea will be voided. Good Luck
Market closed, DJIA, SP500 and NASDAQ got the same wave structure. In this case, SP500 and NASDAQ100 wave (2) retraced to minor wave iv level from wave (1), a common retracement. DJIA went higher.
SP500 retraced Fibonacci 0.618, DJIA went higher targeting Fibonacci 0.764. Nasdaq100 was a little shy, and went a little over 50%. The small caps Russell 2000 retraced under 50% too...
When we look at NYSE composite (a list of all stocks listed in NY Stock Exchange - that means near 2000 firms - 360 foreign companies), the big picture is not as bright as Investment Midia tell us. NYA topped in the early this year (end of January). A wave (3) is now in course, and wave ii of (3) ended at 61.8% retracement of i.
DJ Global Index W1DOW, a better way to follow Global Markets (NYA is somewhat similar), topped at September, and since then traced 1-2 waves. Wave ii of 3 has ended, like NYA.
The question here is: US indexes top in September/October are leading or lagging the rest of the World Stock indexes?
I believe, based on EWT, Us Indexes are lagging as a result of fiscal stimulus, stocks buybacks and companies merges - mostly using borrowed money. World growth shows signs of reducing speed.
Everybody knows this truth! But after an ugly October, no sign of panic yet! The strong retracement in less than 3 days in blue chips is a sign that buyers are truly trusting in another V shape recovery to new highs.
The situation is uglier when we face oil markets. Even after Iran embargo, Brent oiI still in nose diving. Low commodities prices are not what we expect in a growing economy.
Geofftv1
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@allanrcferreira, Interesting facts Allan, Over in the UK the FTSE is down over 10% from the top, some day soon
buyers will get a nasty shock I expect.
allanrcferreira
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I really want today closing under 50 daily SMA. I will close 50% of my sell now (160 pts) and change my SL to 26.235. It is a zero risk trade for now...
Geofftv1
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@allanrcferreira, Makes sense to take some profits , always the risk of a snaoback bounce before a clise on a Friday.
allanrcferreira
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@Geofftv1, at leat some profit to pay weekend's beers
Cheers! Have a nice weekend!
Geofftv1
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@allanrcferreira, Same to you, im on the red wine now. I may be wrong but I see a lead8ng diagonal down complete followed by anither leading duagonal which coukd be the start of 3rd wave down.
allanrcferreira
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@Geofftv1, I am very lazy to post ideas. But I have a lot of wave counts here - indexes, forex pairs, commodities. Everything in MT4 and Netdania. I suffer to post in Trading View. Maybe is time to start posting...
Geofftv1
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@allanrcferreira, I find the feedback from tradingview members stimulating and sometimes hostile.
PS where are you located?
SP500 retraced Fibonacci 0.618, DJIA went higher targeting Fibonacci 0.764. Nasdaq100 was a little shy, and went a little over 50%. The small caps Russell 2000 retraced under 50% too...
When we look at NYSE composite (a list of all stocks listed in NY Stock Exchange - that means near 2000 firms - 360 foreign companies), the big picture is not as bright as Investment Midia tell us. NYA topped in the early this year (end of January). A wave (3) is now in course, and wave ii of (3) ended at 61.8% retracement of i.
DJ Global Index W1DOW, a better way to follow Global Markets (NYA is somewhat similar), topped at September, and since then traced 1-2 waves. Wave ii of 3 has ended, like NYA.
The question here is: US indexes top in September/October are leading or lagging the rest of the World Stock indexes?
I believe, based on EWT, Us Indexes are lagging as a result of fiscal stimulus, stocks buybacks and companies merges - mostly using borrowed money. World growth shows signs of reducing speed.
Everybody knows this truth! But after an ugly October, no sign of panic yet! The strong retracement in less than 3 days in blue chips is a sign that buyers are truly trusting in another V shape recovery to new highs.
The situation is uglier when we face oil markets. Even after Iran embargo, Brent oiI still in nose diving. Low commodities prices are not what we expect in a growing economy.