11 - Crash Sequence & Brexit Volatility vs Wave Patterns
US30 has been classified under a larger corrective cycle, as the structures are displaying multiple corrective features.
The volatile periods between January 2018 and October 2018 have been labeled as the final waves for Cycle V (black). Primary 3 (blue) represents January’s top, followed by a Contracting triangle in Primary 4 (blue), and then and Ending Diagonal in Primary 5 (blue).
October’s sell-off has been labeled as Primary A (red), the first leg of a larger degree correction in Cycle W (pink). Primary B (red) appears as a Flat Correction and finalized once December 2018 started. Primary C (red) breached through an important trend-line (dotted red) and caused serious damage with the biggest sell-off in years. Dow Jones ended 2018 by displaying approx. 20% decrease in its value, thus realistically entering bearish territory.
With a complete 3-wave sequence complete, US30 seems to be reversing towards the up-side, in an attempt to grab hold of the bull market once more. Cycle X (pink) could be the type of wave which can cause surprises and could show a sustained rise ahead. However, for the bull market to gain momentum, the previously breached trend-line (dotted red) would need to be broken on the up-side in a sustained manner. Such break-out and a support granted on the above-mentioned trend-line could result in bullish confidence, thus easing the negative sentiment which is surrounding global indices. In a bullish scenario, the levels in focus could reflect the 24500.00 / 25000.00 followed by 25650.00 if a continuation would be destined to occur.
Dow Jones is approaching significant Fibonacci Retracements levels as well, such as the 61.8% and/or 78.6% of Primary C (red). These measurements could be translated as a Vibration Zone, as the Fibonacci Extensions of Primary waves A & B (red) also alight with the Golden Ratio.
Unless Dow Jones would manage to implement the complacency period once more by breaking out of the bearish territory, there could be more down-side ahead. If US30 would be destined for a larger degree contraction, then this could result in serious and sharp declines.
In a bearish scenario, the 23200.00 levels would need to show a breach in order to imply more possible bearish momentum, while a continuation beyond the 21450.00 levels could extend the complexity behind the uncertainty period.
The volatile periods between January 2018 and October 2018 have been labeled as the final waves for Cycle V (black). Primary 3 (blue) represents January’s top, followed by a Contracting triangle in Primary 4 (blue), and then and Ending Diagonal in Primary 5 (blue).
October’s sell-off has been labeled as Primary A (red), the first leg of a larger degree correction in Cycle W (pink). Primary B (red) appears as a Flat Correction and finalized once December 2018 started. Primary C (red) breached through an important trend-line (dotted red) and caused serious damage with the biggest sell-off in years. Dow Jones ended 2018 by displaying approx. 20% decrease in its value, thus realistically entering bearish territory.
With a complete 3-wave sequence complete, US30 seems to be reversing towards the up-side, in an attempt to grab hold of the bull market once more. Cycle X (pink) could be the type of wave which can cause surprises and could show a sustained rise ahead. However, for the bull market to gain momentum, the previously breached trend-line (dotted red) would need to be broken on the up-side in a sustained manner. Such break-out and a support granted on the above-mentioned trend-line could result in bullish confidence, thus easing the negative sentiment which is surrounding global indices. In a bullish scenario, the levels in focus could reflect the 24500.00 / 25000.00 followed by 25650.00 if a continuation would be destined to occur.
Dow Jones is approaching significant Fibonacci Retracements levels as well, such as the 61.8% and/or 78.6% of Primary C (red). These measurements could be translated as a Vibration Zone, as the Fibonacci Extensions of Primary waves A & B (red) also alight with the Golden Ratio.
Unless Dow Jones would manage to implement the complacency period once more by breaking out of the bearish territory, there could be more down-side ahead. If US30 would be destined for a larger degree contraction, then this could result in serious and sharp declines.
In a bearish scenario, the 23200.00 levels would need to show a breach in order to imply more possible bearish momentum, while a continuation beyond the 21450.00 levels could extend the complexity behind the uncertainty period.
