Dow Jones Trend Analysis (Elliott Wave + AO + Volume)📊 Dow Jones Intermediate Trend Analysis (Elliott Wave + AO + Volume)
🌀 Elliott Wave Interpretation
The chart reflects a clear Elliott Wave count from the post-COVID low:
Wave I and Wave II are well-established.
Wave III is now completed, accompanied by a peak in AO — which aligns with classical Elliott theory where AO typically peaks during the 3rd wave, showing strong momentum.
Wave IV is currently unfolding.
📉 Wave IV Characteristics (Ongoing Phase)
Wave IV is expected to be complex — commonly forming:
Triangles (contracting or expanding),
Flats,
Double/triple threes.
It is likely to consume time and generate sideways or choppy price action.
Volumes, interestingly, are peaking again, which often occurs toward the end of Wave IV due to emotional volatility and retail panic activity.
🔮 Two Probable Scenarios for Wave IV Completion:
Scenario 1 (Shallow Correction):
Target Zone: ~37,400
This zone coincides with the 0.382–0.5 Fibonacci retracement levels from Wave III.
Would reflect a simple flat or sharp zigzag structure.
Scenario 2 (Deeper Correction):
Target Zone: ~34,100
Corresponds to the lower support band with possible spike to 32,988 (FINAL FIB Support).
May occur if external macroeconomic or geopolitical triggers cause extended selling.
📈 Post Wave IV – Projection for Wave V
Once Wave IV completes:
Wave V is expected to resume the larger bullish cycle.
Price target: New all-time highs, possibly towards the upper blue resistance trendline (~46,000+).
Watch for bullish confirmation with AO flipping and price breaking above Wave IV consolidation highs. before completing 4th wave it always create complex patterns. we need to watch the patterns and it is getting completing before move to 5th wave.
🔍 AO (Awesome Oscillator) Insights
AO peak confirms Wave III completion.
Negative divergence between AO and price also supports Wave V capping out, indicating exhaustion of upward momentum.
AO is now retracing — likely bottoming during the end of Wave IV.
🔊 Volume Behavior
Volume peaked at the end of Wave III — a common occurrence.
Now rising again near Wave IV completion – this suggests:
Panic selling,
Possible final shakeout before market stabilizes for Wave V.
Monitor for volume drop-off during Wave V's beginning – a classic signature of reduced fear and return of trend stability.
🔒 Critical Support & Resistance Levels
Level Description
37,400 Scenario 1 target / shallow correction
34,100 Scenario 2 deeper correction target
32,988 Final strong support (Fib extension)
46,000+ Potential Wave V high / upper trendline
📌 Conclusion
The intermediate trend is corrective, within a larger bullish framework.
Wave IV is currently playing out and might end soon.
Watch key support zones (37,400 and 34,100) for potential reversal setups.
Once confirmed, Wave V rally could offer significant upside opportunities.
Remain cautious during this volatile consolidation and validate reversal signs before positioning.
📜 Disclaimer
⚠️ This analysis is for educational and informational purposes only. It is based on technical chart interpretation (Elliott Wave Theory, volume, AO) and does not constitute investment advice. Trading and investing in financial markets involves significant risk, including the risk of losing your capital. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
