DOW

PS The 3 waves down to 703 could also just be wave A of int ii (assuming it was a low). I'd normally expect a wave 2 to go deeper than this has so far.

I'd love it to drop to that trendline by Dec 27th as it coincides with the 61 fib at 15275 on that date and would be a great place to buy for a Happy New Year )

Ha ha! Thanks remo - don't blame you for not wanting to field questions on waves!

We've been looking at some wave options in the chatroom and wave int ii of major 5 of primary 3 seems to be the most likey.

A close above 15790 might also be enough as that should rule out the possibility of a 5 wave down move (since it would overlap the possible wave 1 down).

All fun and games!

The dow being a pain as usual. It just does not want to give us a nice christmas present . This index can be a pain.
A good entry to go long was at 15710 yesterday on a first attempt basis. That entry has now gone.
This correction is not unusual as most correction form in a ABC pattern. Thats one of the reason that a 123 high can be risky to trade. The dow has basically gone back into the channel that it temporary broke out from.The time to be concerned is if the dow goes below 15670 then that could mean a fall back down to 15522 where if it breaks will open up the test of the trend line at 15160ish.
As for the christmas rally.
Its still possible as we still have at least 7 trading days remaining and that could easily mean a massive points change. Look for an early indication by the dow finishing above the previous days high.
The previous days high for today is at 15846. A finish above this could signal a end to the correction as currently the correction has an ABC format.
As for wave counts
were still in wave 3 of the dow so we are expecting wave 4 some time next year and this correction should last about 6 months.
ive got this at wave 5 of major 3....and wave 2 of 5 currently so 3 minor waves remaining...to the big correction. So markets may have until may or june next year to go up till then a big correction.

Please dont ask me about waves as trying to put them to paper does my head in. I dont know the way people label them and that seems to throw a lot of people. This is how i do it and its down to you how you want to read this.
i have this as wave 2 of 5 of 3.
Any way i could be wrong on all this so take with a pinch of salt.
I dont normally tell people about waves but since its cristmas i thought id share my wave count
have fun translating this. and im not available for any questions


dl.dropboxusercontent.com/u/4899609/dowwaves2013.png



dl.dropboxusercontent.com/u/4899609/dow13thdec13.png

15800 held. Still no sell?

Looks like Santa came early this year but got upset and took his toys home with him.

Hi Diver,

I think that was just a comment from WS regarding Friday night's Dow action referring to sell signals from the 5 min chart (ie there weren't any). I think he was saying that Dow could finish close to the 16070 level that the futures peaked at in out of hours trading following the non farm payroll figures from the US.

It didn't quite manage those levels but closed with a very bullish candle as remo's pointed out.

Hope that helps.