Will this Happen to the $DJI ?? ((Wolfe wave ))

I found this Chart !! will it happen ??

It all depends.

If I use my Fib projection tool and measure from the low of 10/9/13 to the high at 11/29/13 and then the pull back from 11/29/13 to 12/12/13 you will hit a 61.8% of the move up 8 times. This does not take in the move down from 12/31/13 to 2/3/14.

If I measure from 2/4/14 to 4/2/14 then to 4/11/14 the percentage of 61.8% would be reached at 16786.6 before a pull back. The candles broke out above the triangle and that usualy indicates a bullish move. As we can see the Dow did move above that pattern. So 16786.6 could be reached first before a pull back. As for the triangle that is shown a new one would need to be drawn since the triangle has bee broken.

If I use my regression line tool (which I really like for a sideways market) no candles have closed above that line nor below it but is instead trading within the area of the regression line. If a candle closes below the bottom regression line then perhaps the DOW will pull back that much or more.

As for today 5/14/14 this market looks tired.

ADDITON redrawing the triangle we then get a wedge and using the FIB Retracement tool you get a 61.8% move at 16762.3 which is exactly where the wedge lines cross.



Edited 1 time(s). Last edit at 05/14/2014 10:47AM by Darcy2.

THANKS DARCY2

I THINK IT IS GOING TO THE TARGET !!

Yes drawing the wedges and FIB #'s must be done every day after the close to get a good reading. Using the FIB retracement tool right now says the DOW will pull back to 16366.7 for a 50% pull back. That will hit at about the 50 ma. The wedge drawn yesterday was broken. Once that happens it does signal a reversal. WMT reporting had a lot to do with that. Possible more down in more retail like JCP or SHLD.

To hit that target of 16148.57 according to the FIB retracement means the market may pull back 80%. It might and it might not. That means either way I am 50% correct!

GW's market calendar clearly indicates where this month might go after today.

This may be an interesting ride.

The wedge is still up so it will be interesting to see. Sometimes I think these sorts of things all depend on where you place your lines and where you start your FIB lines. I think that's why they all it analysis rather than certainity. Interesting topic. Thanks for bringing it up.



Edited 1 time(s). Last edit at 05/15/2014 12:18PM by Darcy2.