Dow Jones Industrial Index
Please see my last post from May 24 here first: http://theelliottwavesufer.blogspot.dk/2013/05/elliott-wave-analysis-of-dji-is-market.html
I was looking for a correction Down to 14.355. We have stopped short of this possible target, but all demands for the decline from the top at 15,517 has been fulfilled and we should be ready for a rally to new Highs above 16,000.
The correction from 15,517 has been bigger and taken longer than any of the correction during wave iii and this is what we normally would expect. Therefore we have seen the bottom of wave iv and is now headed higher in wave v.
To confirm that wave iv is indeed over we would like to see a break above the Falling channel resistance-line near 15,250, but more importantly we would like to see a break above red wave b at 15,340 as that would confirm the next rally higher in wave v.
All that said, once a new high is set above 15,517 we will have to look for any signs of exhaustion, as the major expanding triangle is coming to an end. Once the D-wave of the expanding triangle is finished we should expect a major decline in wave E.
Therefore it would be prudent to use this last rally to exit all or most long position and take cover.
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