Outlook for the Dow

The last time I looked at the chart for the Dow was back in May 2010, where I warned of a downmove to 9000 levels. The correction went only to 9600 area, (still a nice 11% down from the time of the update). Examining it with fresh eyes and more price action reveals that the top seen at that time was not the end of the 5th wave. (Readers should realize that traders need to actively engage in following their own markets in order to be successful. I am looking at it after 7 months and didn’t warn you of this change in count. But you could have easily spotted it with shorter term charts. Wavetimes is only a source of reference for you, to give you numerable examples of how to read the markets).

The outlook for the Dow, in my view, is still positive in the bigger picture. We could see a bit of back-and-forth movement in the coming days because we are likley beginning a complex fourth wave. But later on the market will sort itself out, and a new upmove is likley to happen. The charts give more reasons. Enjoy.

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  1. Dear Mr. Ramki,

    Thanks for your update on DOW. Your updates are ALWAYS pleasure to read.

    My question to you is, breaking what level of DOW would make your count invalid (i.e. we are already in v of 5 and NOT iv of 5, as mentioned by you)?
    Will it be 11000?

    To put it in other words – What would be your SL, if you are long in DOW?

    Thanks in advance.

    With Regards,
    Praveen Vishnu Shamain

  2. Mr. Ramki. I’ve noticed that you emphasize on the point that if wave 2 (corrective wave) is a simple one to notice, that the wave 4 ends up being a complex one. Is this a norm or happens quite often. I’m asking this because I’ve not noticed it as deeply as you have, but thanks to reading your wave analysis I’m making a mental note of the same.


    K P Ganesh

    1. Hi Ganesh, You are a keen observer. Yes, there is a very good chance for the alternate corrective waves to have different personalities so much so that you should anticipate its happening.

  3. Hi Mr. Ramki,

    Just found Your blog today and i like it very much. Thanks for posting!

    I have already a short question if You don’t mind. How does the fibo 70.7% level come?
    Until now i read about the usual like 38,2 and 61,8. I also heard and started to use 78.6 but this 70.7 is new to me. I did some checks and for some corrections it just fits perfectly but still in the Elliott Wave Principle book there is nothing about it.

    I’m pretty new to Elliott waves but enjoy it a lot. I’m trying to trade on the Hungarian index called BUX. Would it be possible to send my counting to You for a “review” just to get some feedback? I prepared monthly, weekly and daily charts with as much info as i could. Any comments are welcome!

    Thanks in advance and sorry for my bad English!

  4. Dear Mr. Ramki, I recently find your web page and considered it very interesting. Do you think wave 5 of the Dow has already finished? Sincerely, Mirko Montoya (Lima, Perú- South America)

  5. Pingback: Analysis of Dow Jones Industrial Average | Trade with an Edge using Elliott Wave Analysis Wave Times - Ramki

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