Here is my latest idea which has the DOW in a 5th wave which is taking the shape of an . Given the continuing strength of the DOW I have posted a wide target of around
21900 to 22000 as the 22000 level will be a tempting target for the bulls. This coming week should see this target area reached after which it will be a good time to go short.
Will be interesting to see what happens when the market opens later today.
This may be a throwover before a drop? time will tell.
New target of 22130 set which is c = 1.618 a
I keep a weekly bar chart on the Dow, with the 5 days CLOSING PRICES used for the Bar.
The Dow is rising at a Parabolic rate of ascent. It is a very powerful advance.
There is really no way of telling when, or from what level the advance will stop. It is very dangerous to think of even think of shorting.
I can tell you that trend line support on the Dow Weekly Closing Basis comes in at..... 21400 on Friday Aug 4.
435 points below where it closed on 7/28. Below that...there is thin air !
Apple, whose chart has been looking quite bearish which and is part of the Dow, releases earnings after the close on 8/1.
Perhaps a negative surprise on earnings is in the makings, and could act as a trigger to start the decline. We shall see.
When it does come, the laws of physics say the decline will be SHARP, QUICK and SUDDEN.
Geoff, There is no way of telling where the ultimate target will be in the Dow.
The Dow is in one of the strongest parabolic UP moves I have ever seen !
In commodities trading, this move up would be called a "Blow Off Top"
The power, velocity, and relentlessness of the move up substantiates its authenticity.
Apple, which is part of the Dow has earnings coming out after the market close tonight at 430pm EDT.
That will Definitely effect the DOW in trading on 8/2. Apple's chart pattern has a bearish top pattern in place going into the earnings.
You are right, I will sit on the sidelines for a while!