Dow (YM); Midterms setting up the Buy
Updated
Descriptions and info on the chart; additionally multiple cyclical frequencies are suggesting the midterms are setting up long entries.
Basic target levels are on the chart with 24,174 the first main level of interest..., though conservative entries could even wait for breakout over the January high.
Many participants are still not interested in buying and are under allocated equities...I continue to believe most will wait till Dow's through 30k and this downside foray has only solidified that stance.
The Alternate count comes into play under 21.5-21k and would delay the upside for 12mths...though 22k would be enough to hint the Alt count is in play.
This pullback in the wave c of iv is quite the setup worthy of applying your own entry techniques and money management to, as structure is only one aspect of the full picture.
Basic target levels are on the chart with 24,174 the first main level of interest..., though conservative entries could even wait for breakout over the January high.
Many participants are still not interested in buying and are under allocated equities...I continue to believe most will wait till Dow's through 30k and this downside foray has only solidified that stance.
The Alternate count comes into play under 21.5-21k and would delay the upside for 12mths...though 22k would be enough to hint the Alt count is in play.
This pullback in the wave c of iv is quite the setup worthy of applying your own entry techniques and money management to, as structure is only one aspect of the full picture.
Note
The Primary target range did well in launching this interim bounce into the 25.5k range so far...a break over the January high would be the first confirmation level that the wave c of iv is complete.The issue is that capital is full of angst in case the Democrats pull off gaining in the House...As it would slow down much of what Trump's been able to put in place in returning to a rule of law setup.
With midterms this week, can't rule out the extension of the Flat or the Extended Flat. Only a strong Democrat showing is likely to give the Alternate count any potential and that, despite the polls doesn't look to be the case. In any event we'll know soon enough.
Playing the levels remains a strategy that's worked.
Note
The January highs have done a good job at capping any potential breakout. Remaining under the January highs leaves the extended levels and Expanded Flat patterns in play and essentially in no-man's land for the position players. Plenty of swing opportunities though best not to lose sight of the larger picture with downside moves sure to bring the bears out roaring.Note
Whilst the 26th rally and probably into end of year run is a nice retracement, the moves in January will likely be the one's of importance. January is likely to be a tough month especially with last years highs still in place. The point I will be looking for is where does January get down to, if the main channel can hold then we may get the return back to the uptrend with a large upside for 2019...however, breaking the channel and continuing down into Feb would suggest the Alt count and down for much of 2019 before the big turn higher late 2019.
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