By cresting Dow9043 intraday, the Dow joins the S&P and Nasdaq, which both exceeded their Dec highs a few days ago. The last ewave holdout, Prechter's STU, has now moved to the Yelnick count. The count in all market indexes is now wave 2 from the Oct lows. And this is behaving exactly like a wave 2 should - drawing everyone including the uber bears into the view that the bull is back. When the last few bears fall, the market will turn. Make no mistake, this rally will be retraced downwards.
The pattern in the Dow today included a triangle followed by a thrust upwards, which normally is a topping pattern. Consequently, it seems likely that after a bit more upside, we end wave 2 and begin wave 3 down. The strength of the current rally, however, suggests we might see a wave 5 extension in this wave C and a longer run up. Key areas to watch are Dow9345 and SP1018, the 61.8% retracements of the full down move into October. Key timing to watch is June 20, the next turn window.
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