Thursday, August 20, 2009

A Look At The Dow

UPDATE (8:30PM PST) By the looks of the ESU09 action so far tonight, I wonder if the X wave (or minute i of Minor C on the bullish count) is complete.

Will have to keep a close eye on this in the AM.







This is a follow to the PM update. While examining the Dow I noticed that price did not violate the descending trend line from the 8/7 high. This violation however occurred on the SPX today, however slightly.

I get so caught up analyzing SPX that I forget about the Dow, which usually presents much cleaner waves. In fact I believe EWP states that the Dow is the better index to analyze when counting waves.

Counting off the Dow is a little clearer and utilizing the line chart shows a much steeper wave for what might be an Ending Diagonal for wave 5 of C of X.

Note: the line chart only charts closing price so intraday highs and lows are not depicted like a bar chart would show.

The Dow may provide a clue (at the least it's a non-confirmation of SPX's break above the descending trend line) as to what this structure may be unfolding before us.

Will price find a ceiling at the descending trend line tomorrow at the conclusion of a possible Ending Diagonal? Will that be the conclusion of wave X?

As always, we will see tomorrow!

0 comments:

Post a Comment