Elliott Wave Analysis of the Dow Jones Industrial Average (YM Futures Contract) by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.
Today’s rally moved higher than I thought it would, so despite there having been no invalidation of yesterdays’s wave count, the question must be asked: What if the July 19 high is taken out? Hence the potential wave count presented above.
Despite presenting the potential for slighly higher high than I did yesterday, based on the impulsive character of the May 1 through June 3 downward impulse, and the choppy, overlapping character of the price action since the June 3 low, I still believe that the May 1 high is highly likely to hold, and that even if there is a upward spike that takes out the recent July 19 swing high, the larger overall expectation is the same: Once this extended corrective episode is finished, new lows well below the early June lows are highly likely to occur before price can eventually climb back above the May 1 high.