Dow Jones – Road Map
Dow moved as expected and did not bring any surprises to those who read the latest weekly report. While the long- and mid-term outlook remains intact, this quick update focuses on tactical moves for the next one to two weeks. Let’s examine signals from several angles and outline the most probable outcome.
ELLIOTT WAVES
Last Wave
Among the majors, the wave the Dow Jones has been forming off Friday’s low appears the cleanest. Assuming a higher-degree impulse, I’ve outlined the next few moves. The advance has been exceptionally aggressive, and it wouldn’t be surprising to see the index reach the $48,900–49,100 area—the current tentative target for wave (i)—later this week or early next week.
Classical Pattern
Flag
The potential flag discussed in the November 8 weekly report appears complete, the index made a 2% lift, and the wave is now progressing toward its target, aligning with the Elliott Wave projection outlined in the previous chapter.
Musings
If Dow Jones completes this impulse as outlined, I expect a cooling period in the second half of November—wave (ii), possibly shallow—which could be followed by an even more impressive wave (iii) in the December–January timeframe.
Happy Trading!
