Two charts of the Dow Jones Industrial Average. One is of the chart patterns and the other is a forecast. The forecast can change if the market breaks out to new highs. At this point we have a chart pattern that says SELL...... and up against the Andrews pitchfork.
Ending diagonal or wedge. 5 waves on depleting volume
Expanding triangle, Depending on the angle and the wave count, can be a continuation. In this case, it would be an ending pattern in a corrective ABC Impulse down. I didn't mark the wave count in the chart, I'll let you guess.
This is my forecast of the Dow Jones Industrial Average.
- 2016 - October 1420
- 2016 - December 12400
- 2017 - March 10400
- 2017 - July 8228
- 2017 - September 6098
- 2020 - April 5500
After this corrective wave is over, we could see the markets go sky high or possibly something similar to the years 2000 to 2003..... A Spiraling Fibonacci Sequence...... DOWN a whole bunch, take your pick.
I'm getting some put options for nearest settlements above on the DIA and SPY, the SPY is looking pretty cheap. I didn't put a chart up for the S&P 500 only because the chart pattern is the same and the dates to the downside are the same.