Never thought id say this but the DJIA is making fib bounces. Even though its an indexed average, it seems the entire market is somehow averaging out into perfect ratios. I'm not sure how that's possible but it could be. If its correct, the market could see an even bigger correction in the coming weeks. I've seen this pattern a lot before so it could turn for the worst.
0. peak
1. first bounce at 24%
2. intermediate peak at 50%
3. double bottom marking fib range (smaller bounce + diverging rsi)
4. recovery to 62% fib and short term graph shows signs of reversal in this region which would complete the pattern.
Breakdown of this pattern below 24% again would be candidate for a bigger correction.
0. peak
1. first bounce at 24%
2. intermediate peak at 50%
3. double bottom marking fib range (smaller bounce + diverging rsi)
4. recovery to 62% fib and short term graph shows signs of reversal in this region which would complete the pattern.
Breakdown of this pattern below 24% again would be candidate for a bigger correction.
