Just after the early February 2018 mini crash I posted that a Elliott wave - Horizontal wave "4" could be forming.
Its possible the DJI has completed this pattern. Many times three will be Fibonacci ratios between alternating waves of a Horizontal Triangle.
These are the ratios among the wave of the current supposed Horizontal Triangle.
c - 1582.60/a - 3249.80 = .486
d- 1281.40/b - 2440.10 = .525
e- 780.40/c - 1582.60 = .493
All alternating waves are close to the .50 Fibonacci ratio.
The flaw in the pattern is the supposed wave "c" which looks more like an impukse wave rather than sub dividing into three waves.
There are two possible alternate wave counts.
1) Wave "c" is still under construction in which case it could decline into the important Fibonacci support area indicated on the chart.
2) There is also a possibility that a nine wave Horizontal Triangle is under construction. In this count the DJI could decline on 3/19/18 and bottom
above wave - "e".
There could be a Fibonacci time cycle turn on 3/19/18. This is 34 trading days after the DJI all-time high.
Another candidate day for a turn could be 3/21/18 which is the FOMC announcement day.
Mark
Its possible the DJI has completed this pattern. Many times three will be Fibonacci ratios between alternating waves of a Horizontal Triangle.
These are the ratios among the wave of the current supposed Horizontal Triangle.
c - 1582.60/a - 3249.80 = .486
d- 1281.40/b - 2440.10 = .525
e- 780.40/c - 1582.60 = .493
All alternating waves are close to the .50 Fibonacci ratio.
The flaw in the pattern is the supposed wave "c" which looks more like an impukse wave rather than sub dividing into three waves.
There are two possible alternate wave counts.
1) Wave "c" is still under construction in which case it could decline into the important Fibonacci support area indicated on the chart.
2) There is also a possibility that a nine wave Horizontal Triangle is under construction. In this count the DJI could decline on 3/19/18 and bottom
above wave - "e".
There could be a Fibonacci time cycle turn on 3/19/18. This is 34 trading days after the DJI all-time high.
Another candidate day for a turn could be 3/21/18 which is the FOMC announcement day.
Mark