DJIA (W) Are the clouds gathering in OCT 2014?
My Idea today is on the DOW and is based on median line and action/reaction techniques.
I see an important Time & Price Zone to watch for a Top in October 2014 around 18100. This view is based on technical's culminating at the same point. Let me begin with the Pattern. For those unfamiliar with an expanding pivot, this is where each consecutive swing gets larger, Beginning with P1 notice how P3 and now P5? is Higher.........Beginning with P2 notice how P4 is Lower, Hence a Megaphone Pattern. This is the first warning sign that a Big Reversal is near. The Second Clue is we count P5 Pivots from the April 1994 Low P0 ( or EW 5 waves ), We also have the Dow very close to the Upper Parallel of the MAJOR Red Pitchfork, This is a selling area so If the market reaches the line & turns there is a very high probability that the ML will be reached on a reversal..............This will place the first low at around 14200....That is around a FIB 21% drop!
We also have important 7 Year Cycles eg from Peak Oct 9 2007 culminating at another peak level this OCT 2014. The steep decline between P3 and P4 may be replicated with short sharp rallies to downward targets.
Let's see how this unfolds in the next few weeks
Sincerely,
TIK
I see an important Time & Price Zone to watch for a Top in October 2014 around 18100. This view is based on technical's culminating at the same point. Let me begin with the Pattern. For those unfamiliar with an expanding pivot, this is where each consecutive swing gets larger, Beginning with P1 notice how P3 and now P5? is Higher.........Beginning with P2 notice how P4 is Lower, Hence a Megaphone Pattern. This is the first warning sign that a Big Reversal is near. The Second Clue is we count P5 Pivots from the April 1994 Low P0 ( or EW 5 waves ), We also have the Dow very close to the Upper Parallel of the MAJOR Red Pitchfork, This is a selling area so If the market reaches the line & turns there is a very high probability that the ML will be reached on a reversal..............This will place the first low at around 14200....That is around a FIB 21% drop!
We also have important 7 Year Cycles eg from Peak Oct 9 2007 culminating at another peak level this OCT 2014. The steep decline between P3 and P4 may be replicated with short sharp rallies to downward targets.
Let's see how this unfolds in the next few weeks
Sincerely,
TIK
