Elliott Wave Analysis DJIA Dow Jones Industrial Average – update of the uber-bearish count by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.
The wave structure since the May 2 high continues to present bearish, and as the downward movement from that high evolves, I plan to gradually use longer term candles to show the count. This time it’s 20 minute candles. The waves are easily counting as downward impulses, followed by short corrective movements, so this count is leaping into lead position as my main wave count. Admittedly, the potential still exists, and will for a while, that the Dow is still in a primary (burgundy) degree wave 4 expanded flat or running triangle, and I plan to continue posting those alternate counts as long as they remain viable. The triangle scenario would be invalidated with movement below 11,555.90, whereas the invalidation for the flat is at 10,719.90.
I’m also going to stop referring to this count as “uber-bearish”, as the potential for a larger correction to the upside is on the very near horizon. I’ll just refer to it as my main count, and the triangle and flat as my alternates.