Dow Jones still carving Wave iv, within Wave (3) lower

7 Jan 2019

The Dow Jones is seen carving out Wave iv at a lower degree with Wave (3) as labelled on the daily chart view here. Believe it or not, the rally on Friday which saw Dow Jones closing on a higher note at 23430 levels, should not be considered as a change in trend. It could still be carving out a wave iv, as a potential zigzag and resume lower anytime soon. If the above structure should hold, prices should ideally stay below the 24000 mark (please note wave iv ideally stays away from wave i termination) and resume lower towards 21800 levels. Please also note that the 38% fibonacci retracement of the entire drop between 26000 through 21800 levels is also passing through 23400 levels, which could be potential termination of wave iv. Overall bearish bias remains until prices stay below 24000 levels.


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