Sunday, 17 April 2016

Dow Jones Industrial Average Top?

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. 

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