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Geofftv1
Nov 5, 2017 9:57 AM

DJI - Final 5th wave chart, including gaps. Short

Dow Jones Industrial Average IndexDJ

Description

My previous charts have used US30 data which includes out of market hours futures and does not show gapping.
This chart of the final 5th wave in DJI shows that a 5th wave is or is very nearly complete along with the gaps that at some point
will be filled.
Wave 5,V has hit an exact 1.618 fib ratio of waves 1-3 which is a common extension for 5th waves, in addition the upper trendline
drawn in parallel from waves 2-4 and from wave 3 has been hit. There may be a small overthrow in the next few days but after this
expect a quick reversal to at least 22700 as extended fith waves often retrace back to the 2nd wave of the extension.
Good Luck

Comment

Drilling down to the 15min chart I think DJI has put in a final ending diagonal to hit the target of 23558 with a double top. A small 5 wave down has completed. Personally I am going short with a SL of 23650. Good Luck.

Comment

Looks like Ending Diagonal complete as of 8th Nov, Wave 1 down completed and retrace will likely close the gap opened at todays open before starting wave 3 down.

Comments
The_Unwind
Geoff,

Dow Futures Down over 100 points in Pre Market Trading on 11/9/17

There is THIN AIR Below ! S+P and NDX Futures Down the Same %

It appears you have called the TOP in the Dow within 5 points.

23563 Close on 11/8 vs Your Call Of 23558 . Congratulations !


THE_UNWIND
Geofftv1
@The_Unwind, Thanks, I note that there is some activity in the bond market today which may be the catalyst, watching the open on Wall St keenly.
The_Unwind
@Geofftv1,

Geoff,

You're absolutely correct !

HYG which is a Corporate Junk Bond ETF has been rolling each day over since Nov.1

This may be the first crack in the bond credit spread.


THE_UNWIND
ahmetnmsl
You mean 21700 instead of 22700 ? The 2nd wave is around 21700. Thanks
Geofftv1
@ahmetnmsl, No, Elliott states that extended 5th waves retrace quickly back to the second subwave of the extension, this is around 22700.
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