Elliott Wave Analysis of the Dow Jones Industrial Average (DJIA) by Sid from ElliottWavePredictions.com. Click on the charts twice to enlarge.
Since the summer of 2011, I’ve been showing a main count in the US stock indices sporting a 5-wave impulse up from the March 2009 low through July 7, 2011, followed by a Primary wave A lasting 3 months through October 4 2011. However, the Primary wave B that followed has lasted 16 months. Because of the outsized burgundy B in relation to Burgundy A, I’ve decided to discard that count in favor of the alternate count shown in this post. Both have had a similar expectation, supported by a significant characteristic of upward large-degree B waves: overlapping price action on diminishing volume.
This new main count expects that all of the upward movement since March 2009 is a wave B, but at one degree larger in trend: Cycle degree. This wave count expects that cycle degree (teal) B either ended on February 19, or has one more slight high (or truncated 5th wave) left to go. Either way, a new substantial downtrend would be confirmed with movement below 13350.96.