Dow Jones – Road Map
Surprisingly or not, the Dow Jones is likely printing the cleanest signals and structure among the major indices. It makes sense to pay closer attention to how the index develops and potentially extrapolate those signals to the broader market.
I hope everyone reviewed the previous Dow Road Map release and considers reading the monthly analysis this weekend.
Ending Diagonal
The Dow is approaching the November 12 high, which I discussed as a potential confirmation level for the ending diagonal. The prospective path remains unchanged — an aggressive decline that would likely accelerate downside pressure across the broader market.
In the previous Road Map, I noted that the potential drawdown from the peak could reach 10% or more, depending on the wave structure. The index likely added one more leg to complete a larger wave i and then retraced roughly 50% of wave i in wave ii. The Dow now appears to be in wave iii, which I expect to extend 1.618–2.618 times the length of wave i.
Last Wave
If the Dow, and the broader market, do not stage a strong reversal today — roughly 1.25% based on the current candle structure — the index is tracking toward a bearish close. We will review the details in the monthly report.
