The Dow Jones Consumers Good index is probably the market that pretty much follows what we thought would happen after the mini flash crash of early February. A series of overlapping 3 waves affair, a counter trend rally, and in this case it sure looks like a double Zig Zag is underway requiring more upside action before its over. Strong resistance is at 632 where the second Zig Zag will equal the first one and this also where the corrective rally will equal 61.8% of the decline from the all time high. But first it needs to move above the resistance created by the descending blue line shown on the chart.
Therefore we stand by our outlook calling for more down side action before the next bullish move gain in earnest. Best case scenario we will be chopping our way sideways for a while in a bullish triangle before we we the rally. But let's be prepared for the worst scenario.
Sometime the second top is seen about 6 weeks after the first top. Thus next week would be an ideal time for reversing lower. Then bottoms sometime appear around 10-11 weeks after the big top. Maybe we will see a bottom by mid-April. Duration are not that reliable but they can help to bolster your confidence if other indicators are flashing a top or a bottom are around the corner.
Thanks for reading.
Therefore we stand by our outlook calling for more down side action before the next bullish move gain in earnest. Best case scenario we will be chopping our way sideways for a while in a bullish triangle before we we the rally. But let's be prepared for the worst scenario.
Sometime the second top is seen about 6 weeks after the first top. Thus next week would be an ideal time for reversing lower. Then bottoms sometime appear around 10-11 weeks after the big top. Maybe we will see a bottom by mid-April. Duration are not that reliable but they can help to bolster your confidence if other indicators are flashing a top or a bottom are around the corner.
Thanks for reading.